Last checked at 1 Oct 2014 08:00
IMMEDIATE RELEASE - Wednesday, 1 October 2014
The Alumasc Group disposes of Pendock
The Alumasc Group plc ("Alumasc"), the premium building and engineering products business, has today completed the sale of the trade and assets of Pendock, its pre-formed plywood pipe boxing business, to Davidson Holdings Limited ("Davidson") for a cash consideration of £1.5 million. The consideration is payable on completion, and is subject only to confirmation of the value of net assets of Pendock as at 30 September 2014. Davidson and Pendock both manufacture products that are sold into similar markets.
The employees of Pendock will transfer with the business under TUPE and Davidson has confirmed it will continue the operation of the business at its current factory in Telford and has signed a new lease on those premises.
Pendock generated revenues of £3.1 million and operating profits of £0.3 million in the year ended 30 June 2014. The book value of Pendock in Alumasc's accounts as at 30 June 2014 was approximately £0.4 million.
Paul Hooper, Alumasc's Chief Executive said:
"The disposal of Pendock is consistent with the Board's stated objective of focusing management and financial resources on developing core activities. The consideration received from the sale will be used to accelerate the expansion of Alumasc's market leading sustainable building product activities, where growth rates have exceeded UK construction market averages in recent years.
All at Alumasc extend our great thanks to Pendock's employees for the hard work and success they have achieved. We are delighted that Pendock will now be owned by a group that we believe is better placed to continue to develop and grow the business in future".
Geoffrey Gestetner, Managing Director of Davidson (www.davidsonholdings.co.uk) commented:
"We are delighted that Pendock (www.pendock.co.uk) has been added to Talon (www.talon.co.uk) within our Clips and Fixings Division. Pendock is another UK manufacturer and brand-leading business with a good reputation for quality products and high service levels to both contractors and merchants. As an existing supplier to these channels with complementary products and similarly strong brands, our team is well-placed to build on the recent improvement in Pendock's performance and benefit from the soft synergies upon which we have built our group".
ENDS
Enquiries:
The Alumasc Group plc:
Paul Hooper (Group Chief Executive) Tel: 01536 383821
Andrew Magson (Group Finance Director) Tel: 01536 383844
Glenmill Partners Limited:
Simon Bloomfield Tel: 07771 758517