Business
Potential sale of French operations/trading update
Potential sale of French operations/trading update.
About this update from Genuit Group Plc
[{"type":"text","content":"\n \nRNS Number : 3978D Polypipe Group PLC 31 January 2018 \n\n31 January 2018\nPolypipe Group plc \n Exclusive negotiations for the sale of French operations and trading update\n \nExclusive negotiations for the sale of French operations\nPolypipe Group plc (\"Polypipe\" or the \"Company\") has entered into exclusive negotiations to sell Polypipe France Holding (\"Polypipe France\"), its French operations, to Ryb S.A. (\"Ryb\"), a France-based manufacturer and distributor of plastics in Europe (the \"Disposal\"). The cash consideration payable by Ryb will be €16.5 million on a debt free, cash-free and normalised working capital basis.\nFor the year ended 31 December 2017, Polypipe France generated revenue of approximately €67.6m and underlying operating profit of approximately €1.5m.\nCompletion of the transaction, which remains subject to an employee consultation process, is expected in the first half of 2018. Proceeds from the Disposal, receivable in cash at completion, will be used to reinvest in the growth of the Company.\nTrading update\nFurther to the update on trading announced in November 2017, the Group's trading performance for the full year was in line with management expectations. The Company will announce its preliminary results on 20 March 2018.\nCommenting on the transaction, Martin Payne, Chief Executive Officer, said:\n\"Polypipe France has historically operated in a competitive area of the French construction market and will be better able to grow under new ownership. In line with its strategy, Polypipe will continue to focus its resources fully on delivering profitable growth, both organically and by acquisition, through legacy material substitution, legislative tailwinds in water management and carbon reduction, and geographic reach.\" \nThis announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) No 596/2014.\nEnquiries:\nPolypipe ...