Sale of Cookson's ceramic fibres business for US$23M
Feb 22, 2006
Cookson Group plc ("Cookson") announces that on 21 February 2006 it entered into agreements to sell its Ceramic Fibres business ("Ceramic Fibres"), a business that forms part of its Ceramics division, for a total cash consideration of US$23 million.
Cookson's Ceramic Fibres operations in Tennessee, the US and Poland are to be sold to The Morgan Crucible Company plc ("Morgan Crucible") for a cash consideration of US$21 million. Cookson has also separately agreed to divest its 50% shareholding in its Ceramic Fibres joint venture in Mexico to its joint venture partner, Grupo Nutec S.A. de C.V. , for a cash consideration of US$2 million. Completion of both transactions is expected to take place in March 2006.
Following completion of the sale, Cookson will act as a distributor for Morgan Crucible of ceramic fibre products into the iron and steel, foundry and construction market segments in the NAFTA region.
For the year ended 31 December 2005, Ceramic Fibres had revenues of US$21 million.
Commenting on the sale, Nick Salmon, Chief Executive of Cookson Group plc, said:
"Ceramic Fibres is a non-core activity which, on its own, lacks the scale to achieve a leading market position. It should have greater potential to develop within its new owner's portfolio and hence this is a good deal for all parties."