Casting and engineering firm Chamberlin has announced it has completed the sale of manufacturing business Exidor to ASSA ABLOY, for a total enterprise value of £10m with the consideration to be paid in cash.
The proceeds of the disposal will be used to reduce Chamberlin’s debts, to provide additional working capital and to reduce certain the company’s existing pension liabilities.
The cash consideration represents approximately 180% of Chamberlin’s market capitalisation based on the group’s closing mid-market share price of 70 pence per ordinary share as at 18 December 2018.
Exidor employs approximately 70 staff from its premises in Cannock, all of whom will be retained under the new ownership. Turnover in the year to 31 March 2018 was £7.52m and operating profit was approximately £651,000. Total net assets as at 31 March 2018 were approximately £2.01m.
Chairman, Keith Butler-Wheelhouse, said: “This transaction will enable Chamberlin plc to restructure its balance sheet and will provide additional working capital. We can look forward to the further development of our core operations with greater certainty and with considerable optimism.
“We believe that ASSA ABLOY, who are well positioned to support the ongoing growth and development of the business, represents the ideal owner for Exidor.”