1 December 2011
Yule Catto & Co plc
Disposal of Pharma Division
Yule Catto & Co plc ("Yule Catto" or the "Group"), the international producer of specialty chemicals, is pleased to announce the sale of its non-core Pharma Chemicals division, Uquifa, to Vivimed Labs, an emerging global player in pharma, with strong interests in Europe, for a total consideration of £35.0 million.
The proceeds comprise £28.6 million paid in cash and an unconditional payment of £6.4 million deferred for three years, covered by an irrevocable UK bank guarantee. The proceeds will be used to pay down Group indebtedness.
Uquifa is a manufacturer of Active Pharmaceutical Ingredients and intermediates for the pharmaceutical industry. It operates three manufacturing sites, two in Spain and one in Mexico, employing a total of 390 people. Mark Robbins, CEO of Uquifa, and a member of the Yule Catto executive management team, will transfer with the business.
The Pharma division reported an operating profit of £4.45 million in the year to 31 December 2010, and had net assets of £41.6 million (gross assets of £63.7 million), as at 30 June 2011. The transaction is expected to have a slightly dilutive effect on the Group's earnings.
Adrian Whitfield, Chief Executive of Yule Catto, commented:
"I am delighted to be able to announce this disposal. Following the PolymerLatex acquisition we completed earlier this year, this marks the final step in a long process of transforming Yule Catto into a substantial highly focussed Specialty Polymer business. We are pleased we have been able to find a good home for our Pharma business and wish the new owners and our former employees every success."
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Enquiries:
Yule Catto
Adrian Whitfield, Chief Executive Tel: 01279 442791
David Blackwood, Group Finance Director
MHP Communications
Andrew Jaques / John Olsen / Ian Payne Tel: 020 3128 8100
This information is provided by RNS