Last checked at 23 Feb 2012 08:36
23 February 2012
SALE OF COOKSON'S US PRECIOUS METALS BUSINESS
TO RICHLINE GROUP, INC.
Cookson Group plc ("Cookson"), a leading materials science company, announces that on 22 February 2012 it entered into an agreement to sell its US Precious Metals business, an operation that forms part of its Precious Metals division, to Richline Group, Inc. ("Richline"), a subsidiary of Berkshire Hathaway Inc.
In its Interim Management Statement issued on 10 November 2011, Cookson announced that, following the US Precious Metals business becoming loss-making, it had initiated a strategic review and significant downsizing of the business. Subsequently, Richline expressed an interest in acquiring this business, and on 22 February 2012, Cookson and Richline entered into an agreement for Richline to acquire the business, subject to normal legal and regulatory closing provisions which are expected to be completed in the second quarter of 2012. The net cash consideration is subject to closing balance sheet adjustments but is expected to be sufficient for Cookson's exit from the business to be cash neutral, including taking into account the restructuring and other costs incurred in preparing the business for sale. The gross assets of the businesses being acquired by Richline are approximately US$69.8m (£44.4m*), whilst the net assets are approximately US$60.2m (£38.3m*).
For the year ended 31 December 2011, the US Precious Metals business had revenue of US$232m (£144m) and net sales value** of US$78m (£49m).
The division's profitable European operations are unaffected by the transaction.
Commenting on the sale, Nick Salmon, Chief Executive of Cookson, said:
"This is a positive outcome for all parties. For Cookson, it represents a clean and timely exit, and for the business and its employees it offers the prospect of a viable and stronger future under Richline's ownership."
Notes:
* translated at an exchange rate of US$1.57/£1
** net sales value is revenue excluding precious metal content
Shareholder/analyst enquiries: | |
Nick Salmon, Chief Executive | Cookson Group plc |
Mike Butterworth, Group Finance Director | Tel: + 44 (0)20 7822 0000 |
Media enquiries: | |
John Olsen | MHP Communications |
Anthony Arthur | Tel: +44 (0)20 3128 8100 |
About Cookson Group plc:
Cookson Group plc is a leading materials science company operating on a worldwide basis in ceramics, electronics and precious metals markets.
The Ceramics division is the world leader in the supply of advanced consumable refractory products and systems to the global steel and foundry industries and a leading supplier of speciality products to the glass and solar industries.
The Electronics division is a world leading supplier of electronic assembly materials and advanced surface treatment and plating chemicals to the electronics, automotive, industrial and construction markets.
The Precious Metals division is a leading supplier of fabricated precious metals (primarily gold, silver and platinum) to the jewellery industry in the UK, France and Spain, and also has significant precious metal recycling operations.