Business
Acquisition of Assets
Acquisition of Assets.
About this update from Castings Public Limited Company
[{"type":"text","content":"\n\nCastings PLC\nPurchase of assets\n \nCastings PLC (\"Castings\" or \"the Company\"), the leading iron casting and machining group primarily focused on the European heavy truck market, is pleased to announce it has acquired the fixed assets and stock of Russell Ductile Castings Limited (\"RDC\") from its appointed administrators.\n \nRDC, a subsidiary of Chamberlin plc, was an iron foundry producing parts for the capital goods and energy market, some of which are common to the existing Castings group. In the last audited accounts to 31 May 2023, RDC generated revenue of £10.03m and an operating profit of £0.45m. It ceased production following the appointment of administrators in May 2024.\n \nTotal consideration paid for the RDC assets was a single cash payment of £0.4m paid to the administrators on signature of the purchase agreement on 14 June 2024, from the Company's existing resources. \n \nThe plant offers the capability to manufacture castings with weights ranging from 10kg to 7,000kg in cast iron. The intention is to continue to operate the plant from the existing site in Scunthorpe over which a new 25-year lease (including appropriate break clauses) has been agreed.\n \nThe directors believe that the acquisition provides the opportunity to diversify the product offering of the Castings group with an established customer base that the directors are confident of being able to continue to service.\n \n \nCastings PLC +44 (0) 1543 374341\nS J Mant, Director and Company Secretary\n \nCanaccord Genuity Limited (Joint Broker) +44 (0) 20 7523 8000\nAdam James\nGeorge Grainger\n \nZeus Capital Limited (Joint Broker) &nb...