McBride PLC Sale of European Personal Care liquids (3461T)
03 July 2018 - 4:00PM
UK Regulatory
TIDMMCB
RNS Number : 3461T
McBride PLC
03 July 2018
3 July 2018
McBride plc
Sale of European Personal Care liquids
McBride plc, the leading European manufacturer and supplier of
Co-manufactured and Private Label products for the Household and
Personal Care market, today announces that it has agreed to sell
its European personal care liquids business to Royal Sanders Group
for a cash consideration of GBP12.5m.
In its half year results of 22 February 2018, McBride announced
plans to launch an accelerated transformation programme to return
its Personal Care & Aerosols (PCA) division to break even
within 18 months. Since February, the Group has announced proposals
to close it UK aerosols operations at Hull. As a result of this
action and the absorption of certain volumes into our French
aerosols operation, the Group expects its ongoing aerosols
operation to be at break-even profitability levels by July
2019.
As the next step in the PCA transformation programme, the Group
today announces that it has agreed terms with Royal Sanders for the
disposal of the Group's European Personal Care liquids activities,
which comprises two manufacturing sites at Bradford, UK and Ieper,
Belgium, which supply customers with a range of personal hygiene,
haircare and oral care products.
The proposed transaction, which is subject to customary closing
conditions, will comprise the disposal of the trade and assets of
the Group's European personal care liquids business for a cash
consideration of GBP12.5m (subject to any post-closing working
capital adjustments), payable on completion. In the 12 months to
June 2017 the business generated revenues of GBP58.8m and an EBITA
loss of GBP1.9m. Gross assets at 31 December 2017 were GBP19.8m.
For the 12 months to 30 June 2018, the business is expected to
generate revenues of GBP56.0m and an EBITA loss of GBP2.8m.
Proceeds of the sale will be used to pay down Group net debt and
settle transaction costs. The transaction is expected to complete
during the last quarter of 2018.
Rik De Vos, Group Chief Executive, commented;
"The agreement to sell our European Personal Care liquids
activities follows a comprehensive review of the business and marks
the final element in the transformation plan for our European PCA
activities. The transaction enables the business to be developed as
part of a dedicated personal care manufacturer of greater scale and
positions McBride's European operations as a focused Household
business with a clear strategy to deliver sustainable profitable
growth."
For further information please contact:
McBride plc
Rik De Vos, Chief Executive Officer 0161 203 7570
Chris Smith, Chief Financial Officer 0161 203 7570
FTI Consulting 020 3727 1017
Ed Bridges, Nick Hasell
Note: This announcement contains inside information which is
disclosed in accordance with the Market Abuse Regulation which came
into effect on 3 July 2016.
-Ends-
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END
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