27 Feb 2009 16:02
Haynes Publishing Group P.L.C.
Sale of UK Book Production business
The Board of Haynes Publishing Group P.L.C. (Haynes) is pleased to announce the sale of its UK Book printing business ("the business") to JF Print Limited.
Under the terms of the sale, JF Print Limited has acquired the plant and equipment used in the business and will continue to print Haynes UK Book Division titles for a period of 12 months following completion. As part of the transaction the jobs of the 43 permanent employees who work in the business have been secured, with the employees transferring to JF Print Limited on similar terms and conditions. Haynes has retained the services of the UK Production/Works manager who will oversee the scheduling, planning and manufacturing of future Haynes book printing. a
JF Print Limited will operate from leased premises at the existing Sparkford site in Somerset and the transaction includes a three year lease agreement for those premises at a rent of approximately £0.1 million per year.
The consideration for the transaction was £0.4 million; £0.3 million payable in cash on completion and £0.1 million payable in cash by instalments over the following 12 month period. The values of the gross assets subject to the sale were £0.5 million and in the last full financial year the business made a loss, before the allocation of central overheads, of £0.6 million.
The sale of this business is consistent with statements in our recent Interim report where we described our willingness to dispose of those activities which are not core to the future growth of the UK & European business and follows an extremely detailed analysis of all our printing options. The agreement ensures that our current manufacturing costs for related products are protected in the short term with realistic expectations of savings in future periods and the sale proceeds will help pay down the UK borrowings following the acquisition of Vivid in 2008.
Contacts :
Haynes Publishing Group P.L.C.
Eric Oakley, Group Chief Executive 01963 442009
J Haynes, Group Vice Chairman & UK&E Managing Director 01963 442009