Business
Disposal
Disposal.
About this update from Discoverie Group Plc
[{"type":"text","content":"\n \nRNS Number : 4845Q Acal PLC 15 October 2013 \n \n\n15 October 2013 \n \nAcal plc\n \nProposed disposal of the European Supply Chain Parts Business \n \n \nIntroduction\n \nAcal plc (LSE: ACL, \"Acal\", the \"Group\" or the \"Company\"), a leading European specialist electronics supplier, announces the proposed disposal of its European Supply Chain IT parts business (the \"Disposal\"). \n \nThe Company has agreed to sell its German based IT parts distribution business (the \"European Parts Business\"), being one of the two remaining businesses contained within its Supply Chain Division, to a company in which the European Parts Business' management team is participating. The Disposal is subject to shareholder approval. For the year ended 31 March 2013, the European Parts Business had revenues of €23.6m (£19.2m or 9% of Group revenues) and generated profit before tax of €0.8m (£0.7m). \n \nThe Disposal of this non core business reflects Acal's continued strategy of building a specialist industrial electronics group and follows on from the disposal in January this year of its UK Parts Business. The disposal would further enable the Group to focus its resources on enhancing the value of its core Electronics Division, which comprised 88% of Group revenues for the first quarter of the financial year ending 31 March 2014.\n \nConsideration for the Disposal, if approved, will be €4.4m (£3.7m), comprising initial consideration of €4.0m (£3.4m) payable on completion of the Disposal and deferred consideration of €0.4m (£0.3m), payable on 31 March 2014. The Disposal is expected to result in a nil profit on disposal (before transaction costs). Sale proceeds from the Disposal will be retained for working capital purposes, for future investment within the Group or as consideration for future acquisitions by the Electronics Division. \n \nNick Jefferies, Group Chief Executive of Acal plc said:\n \n\"The proposed disposal of the European IT parts business is another step in our stated strategy of focusing on the specialist industrial electronics market and provides additional resources to invest in this area. We wish the EAF management team every success in the future.\"\nThe Company will announce its results for the half year ended 30 September 2013 on Friday 29 November 2013. On the d...