DCC Regulatory News (DCC)

12 Nov 2007 07:01

Fayrewood PLC12 November 2007 Fayrewood plc ("Fayrewood" or the "Group") Sale of Banque Magnetique SAS Fayrewood plc, (AIM:FWY), announces today that it has exchanged contracts forthe sale of its subsidiary Banque Magnetique, SAS, based in France to GemLogistics Limited, a subsidiary of DCC plc, listed on the Irish and London StockExchanges, for a maximum total consideration payable in cash of €12.5 millionand the assumption of Banque Magnetique's net debt on completion. Completion isconditional, inter alia, on the approval of the French competition authorities. The sale of Banque Magnetique completes a disposal programme announced inOctober 2006. In March 2007 Fayrewood sold the remainder of its shares inComputerLinks AG for €24.7m following the sale in December 2006 of itssubsidiary in Spain, UMD SAU for €53.5m. In June 2007, Fayrewood returned £35million to its shareholders. Of the total consideration for Banque Magnetique, €12.0 million will be payableon completion with the balance being payable on 30 June 2008 subject to BanqueMagnetique's profit before interest, tax, employee participation entitlementsand Group charges for the year ended 31 December 2007 being not less than €5.547million. Banque Magnetique is a leading distributor of a broad range of consumerelectronics and IT peripheral products to the French market. Brands sold includeLogitech, Via Michelin, Creative Labs, Iomega, Navman and BenQ. The companydeals with most of the major French mass market retail chains and e-commerceoutlets. In the year ended 31 December 2006, Banque Magnetique generated a pretax profit, before Group charges and employee participation costs, of €3.1million on revenue of €244.9 million. As at 31 October 2007, Banque Magnetiquehad net assets of approximately €13.0 million, including net debt of €25.6million. The estimated total net sale proceeds of €11.65 million, together with theassociated release of a £2.3 million cash backed guarantee to Barclays Bank plcin respect of Banque Magnetique's borrowing facilities will increase Fayrewood'scash balances to approximately £34.5 million, of which £10.6 million is retainedas security for various Group guarantees. Following the sale of Banque Magnetique, the Board of Fayrewood will, over thenext few months, focus its efforts on the Company's remaining trading subsidiaryInterface Solutions, based in Birmingham. The new management team at Interface Solutions has undertaken a complete reviewof operating procedures and management information systems which has involvedcosts that have been provided for in the year to date. This review has hadimportant positive results including improved relationships with major supplierswhich has resulted in several new and significant trading opportunitiesmaterialising. With sales in the first nine months of the year showing growthover 2006, Interface is well positioned for the seasonally all important fourthquarter and has an air of confidence about prospects for 2008. David Kleeman, chairman of Fayrewood commented "The sale of Banque Magnetiquecompletes the disposal programme set out in Fayrewood's strategy which wasoutlined in October 2006. The sale follows the successful disposal of UMD SAU,the sale of our investment in Computerlinks AG and the return of £35 million toour shareholders in June 2007." Enquiries: David Kleeman, Chairman 020 7430 9329 Fayrewood plc Oliver Scott / Richard Kauffer 020 7418 8900 KBC Peel Hunt Tim Anderson / Lisa Baderoon 020 7466 5000 Buchanan Communications This information is provided by RNS The company news service from the London Stock Exchange