Last checked at 20 Apr 2009 07:00
Cranswick plc ("Cranswick") - sale of pet activities
Cranswick announces today that following a competitive tender process it has exchanged contracts for the sale of its pet activities, Cranswick Pet Products ("CPP") and Tropical Marine Centre ("TMC"), on a cash and debt free basis as part of a management buy-out backed by Lloyds TSB Development Capital. The management buy-out team comprises of main board director Derek Black, TMC managing director Paul West and certain other members of the respective management teams. Completion is scheduled for Friday April 24 2009 whereupon Derek Black will resign from the main board and the remainder of the management team will also leave Cranswick.
The consideration is £17 million payable in cash at completion. There is a mechanism in place to normalise working capital through a cash adjustment. In addition Cranswick will retain a 5.5 per cent share in the business going forward. The consideration will be used to reduce group borrowings ahead of the £17.2 million acquisition of Bowes of Norfolk which was announced earlier this month and which is expected to complete in June 2009. The gross assets being disposed of amounted to £22.9 million as at 30 September 2008 with net assets of £17.2m and the profit before exceptional property gains attributable to those assets for the year to 31 March 2008 was £1.9 million (£2.7 million including property gains).
Commenting on the sale, Chairman Martin Davey said: "We would like to take this opportunity to thank Derek and Paul and all the employees of CPP and TMC for their contribution to Cranswick over many years and to wish them all the best in their new venture. Derek has been with Cranswick since 1980 and was appointed a main board director in 1988. Paul joined TMC as managing director in 1997. Cranswick is now wholly focused on its food activities and will continue with its strategy to grow both organically and through acquisition as demonstrated by the recently announced acquisition of Bowes."
Enquiries:
Martin Davey 01482 372080 (Mobile 07775 576426)
John Lindop 01482 372090 (Mobile 07768 362592)