11 Sep 2012 07:00
600 Group Plc announces sale of FMT Colchester Sp. Zo.o ("FMT")
600 Group Plc ("600 Group"), the machine tools and laser marking company, today announces the sale of its subsidiary in Poland, FMT, to G.D.W. Werkzeugmaschinen Herzogenaurach GmbH ("GDW"). The closure of FMT was previously announced on 10 August 2012 following the withdrawal of financial support from FMT by 600 Group. Following this previous announcement, discussions have been conducted with GDW, a significant customer of FMT, resulting in the sale of 100% of the share capital to GDW.
Under the terms of the agreement, GDW will recommence production at FMT and will retain FMT's exclusive license to manufacture and sell Colchester brand conventional lathes in the German market, and in doing so is expected to secure a modest licensing revenue stream for 600 Group. FMT will also continue to offer machine tool manufacturing service capabilities to 600 Group.
Commenting on the transaction, Chief Executive Nigel Rogers said:
"This is great news, especially for more than 200 employees of FMT in Poland, who will be relieved that the purchase by GDW has secured the future of the plant at Tarnow. We will continue to offer GDW technical support and co-operation, and wish them every success."
More information on the group can be viewed at: www.600group.com
Enquiries:
The 600 Group PLC 01924 415 000
Nigel Rogers, Chief Executive
Neil Carrick, Finance Director
Cadogan PR Limited 0207 930 7006
Alex Walters / Lavinia Fiamma 07771 713608
finnCap 020 7220 0500
Ed Frisby / Ben Thompson (corporate finance)
Tony Quirke / Victoria Bates (sales & broking)