Business
Disposal of Sheen Instruments
Disposal of Sheen Instruments.
About this update from Checkit Plc
[{"type":"text","content":"\n \nRNS Number : 1387U Elektron Technology PLC 20 October 2017 \n\n20 October 2017\n \nElektron Technology plc\n(\"Elektron\" or the \"Company\")\n \nSale of Sheen Instruments Limited\n \nElektron Technology plc (AIM:EKT, \"Elektron\" or the \"Group\"), the global technology group, has completed the sale of its wholly owned subsidiary, Sheen Instruments Limited (\"Sheen\"), to Industrial Physics Inc. The transaction was executed through Industrial Physics' Dutch subsidiary, Büchel B.V., for a total gross consideration of approximately £1.2 million cash of which £1.1 million was received on completion and approximately £0.1 million is due in October 2018 subject to any adjustment for unforeseen liabilities. Industrial Physics is a platform company of Union Park Capital, a US-based private equity firm specializing in industrial technology. \n \nSheen is a leading manufacturer and supplier of inspection and testing instruments used in the paint, coating, automotive and other industries.\nIn the year ended 31 January 2017 the sales of Sheen were £2.6 million and 'Brand Contribution' was £0.2 million. Brand Contribution is an internal measure of profitability before the allocation of certain Group pooled costs such as finance, information technology and human resources. After making a deduction for a fair share of these costs the Board estimates Sheen's operating profit to be £0.1m million for the year ended 31 January 2017.\nThe cash proceeds will be used by Elektron for working capital purposes. The disposal will be dilutive of earnings initially but the Board expects to improve the performance of the remaining businesses.\nThe disposal is part of the Group's rationalisation of its portfolio, further focusing its investment on its remaining businesses namely Bulgin, Checkit, Elektron Eye Technology and Queensgate.\n \n \nEnquiries:\n\n\n\n\n \nElektron Technology plc \nwww.elektron-technology.com\n\n\n+44 (0) 1223 371 000\n\n\n\n\nKeith Daley - Chairman\n\n\n \n\n\n\n\nAndy Weatherstone - Chief Financial Officer & Company Secretary\n\n\n \n\n\n\n\n \n\n\n \n\n\n\n\nfinnCap (Nominated Adviser & Broker)\n\n\n+44 (0)20 7220 0500\n\n\n\n\nEd Frisby / Scott Mathieson - Corporate Finance\n\n\n \n\n\n\n\nAbigail Wayne - Corporate Bro...