Last checked at 20 Dec 2018 07:00
AIM: CMH
Chamberlin plc
("Chamberlin" or the "Group" or the "Company")
Sale of Exidor Limited for total cash consideration of £10 million
Chamberlin plc (AIM: CMH) announces that it has completed the sale of Exidor Limited ("Exidor") to ASSA ABLOY Limited ("ASSA ABLOY"), for a total enterprise value of £10m with the consideration to be paid in cash.
The proceeds of the disposal will be used to reduce Group indebtedness, to provide additional working capital and to reduce certain of the Company's existing pension liabilities.
The cash consideration represents approximately 180% of Chamberlin's market capitalisation based on the Group's closing mid-market share price of 70 pence per ordinary share as at 18 December 2018.
Exidor employs approximately 70 staff from its premises in Cannock, all of whom will be retained under the ownership of ASSA ABLOY. Turnover in the year to 31 March 2018 was £7.52m and operating profit was approximately £651,000. Total net assets as at 31 March 2018 were approximately £2.01m.
Chairman, Keith Butler-Wheelhouse, commenting on the transaction said:
"This transaction will enable Chamberlin plc to restructure its balance sheet and will provide additional working capital. We can look forward to the further development of our core operations with greater certainty and with considerable optimism.
"We believe that ASSA ABLOY, who are well positioned to support the ongoing growth and development of the business, represents the ideal owner for Exidor."
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
Enquiries:
Chamberlin plc (www.chamberlin.co.uk) T: 01922 707100
Kevin Nolan, Chief Executive
Neil Davies, Finance Director
Cenkos Securities plc
(Nominated Adviser and Broker) T: 020 7397 8900
Russell Cook/Katy Birkin
KTZ Communications T: 020 3178 6378
(Financial PR)
Katie Tzouliadis/Emma Pearson/Dan Mahoney