Synthomer Regulatory News (SYNT)

11 Feb 2008 07:01

Yule Catto & Co PLC11 February 2008 Yule Catto & Co. plc Sale of James Robinson Yule Catto is an international producer of speciality chemicals, supplied toglobal customers for use in a wide range of industries includingpharmaceuticals, FMCG, paints and adhesives Yule Catto & Co plc ("Yule Catto" or the "Company") is pleased to announce thatit has exchanged conditional contracts with Vivimed Labs Limited ("Vivimed") forthe sale of the entire issued share capital of James Robinson Limited and otherassociated assets (together "James Robinson") for a consideration of $21.15million plus working capital of approximately $4.5 million. The considerationwill be paid as to $17.15 million plus the working capital amount in cash atcompletion and a further $4 million into escrow pending successful completion ofcertain product transfer arrangements. The completion of the sale is conditional on, amongst other things, Vivimedobtaining shareholder approval for the acquisition which is expected to beobtained by mid April 2008. The proceeds of the sale received by Yule Catto will be used to reduce theCompany's borrowings, and the transaction will be earnings accretive James Robinson carries on the development, manufacture and supply ofphotographic and photochromic chemicals and hair and other dyes. In the twelvemonths to 31 December 2006 it had sales of £17.8 million, an operating profit of£0.82 million and gross assets of £3.0 million. The James Robinson management team led by Dr Richard Smith will continue to runthe business. In addition, Yule Catto anticipates disposing of its interest in James RobinsonIndia (Private) Limited to its joint venture partner following the completion ofthe sale of James Robinson for a consideration of some $1.5 million. Adrian Whitfield, Chief Executive commented: "This sale is in line with YuleCatto's corporate strategy of delivering improved shareholder value from itsImpact Chemicals activities". 11 February 2008 ENQUIRIES: YULE CATTO Tel: 01279 442791Adrian Whitfield, Chief ExecutiveDavid Blackwood, Finance Director COLLEGE HILL Tel: 020 7457 2020Gareth DavidAnthony Parker This information is provided by RNS The company news service from the London Stock Exchange