LUXFER SELLS BA TUBES
17 December 2007
LUXFER AGREES TO SELL
MANCHESTER: 17 Dec 2007 Luxfer Group today announced that it had reached agreement to sell its BA Tubes business to Aluminiumwerk Unna ("ALUnna") of Germany. The sale is conditional on the availability of bank facilities that are currently being arranged.
The consideration (before costs) is broadly asset value at completion, estimated at £6.4 million. Approximately half of this, representing the value of working capital, is due to be paid on or around completion. Of the balance, £2.4 million for the plant and machinery will be paid in equal instalments over five years. The remaining £0.8 million represents the book value of the land and buildings. ALUnna has agreed to purchase these, but this is conditional upon remediation of the environmental problem at the site. In the meantime, which could be several years depending how well the remediation efforts go, Luxfer will lease the site to ALUnna's new UK operating subsidiary.
The BA Tubes business, based at Redditch, has struggled in recent years with a combination of rising material and energy costs and unfavourable exchange rates. Management and workforce, however, have overcome these difficulties to lift the company back towards a break-even performance in the second half of 2007, and this has improved the prospects for the business.
ALUnna is a successful speciality tube manufacturer with a strong aerospace presence and it has entered into a commitment to retain the Redditch site and workforce, and to expand the operation by around 30% to improve the sustainability of the business.
It is expected that the deal will be completed during January 2008.
Enquiries to: Brian Purves
0161 911 8815