Synthomer Regulatory News (SYNT)

21 Jul 2008 07:00



Yule Catto & Co. plc

Sale of ultramarine pigment business

Yule Catto is an international producer of speciality chemicals, supplied to global customers for use in a wide range of industries including pharmaceuticals, FMCG, paints and adhesives

Yule Catto & Co plc ("Yule Catto" or the "Company") is pleased to announce that it has exchanged conditional contracts with Rockwood Specialities Group Inc ("Rockwood") for the sale of the entire issued share capital of Holliday Pigments SA, Holliday Pigments International SA, Holliday France SA and Holliday Chemical Espana SA for a consideration of €46 million. The consideration will be paid in full in cash at completion.

The completion of the sale is conditional on regulatory clearances in Germany and Austria, which are expected to be obtained by the first week of August.

The proceeds of the sale received by Yule Catto will be used to reduce the Company's borrowings.

Holliday Pigments SA and Holliday Pigments International SA manufacture and supply ultramarine pigments. Holliday France SA and Holliday Chemical Espana SA are trading companies operating in the French and Spanish markets respectively. In the 12 months to 31 December 2007, the combined companies had, at historic exchange rates, an operating profit of £3.2 million and gross assets of £17.3 million.

Glyn Jagger will continue as Managing Director of the companies.

Adrian Whitfield, Chief Executive, commented:

"This sale is in line with our stated strategy of realising increased shareholder value from the businesses within Impact Chemicals. I strongly believe that this represents a good deal for our shareholders and will take total realisations from all Impact Chemical disposals this year to some £50 million. "

21 July 2008 

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