Marshalls PLC
04 January 2005
4 January 2005
MARSHALLS PLC
SALE OF CLAY PRODUCTS DIVISION FOR £65 MILLION
Marshalls plc ('Marshalls'), the specialist Landscape and Natural Stone Products
Group, is pleased to announce that, today, it has completed the unconditional
sale of the entire issued share capital of Marshalls Clay Products Limited (the
'Clay Products Division') to Hanson PLC, for a cash consideration of £65 million
including the repayment of all intergroup indebtedness.
The Clay Products Division manufactures and supplies a range of clay bricks and
pavers from four facilities (three in Yorkshire and one in Lancashire) to
domestic, commercial and public sector users based predominantly in the UK.
For the year ended 31 December 2003, the Clay Products Division generated EBITA
of £4.2 million, on turnover of £32.1 million. As at 31 December 2003, the Clay
Products Division had net operating assets, before intergoup indebtedness,
of £37.1 million. In the year ended 31 December 2004, the Clay Products
Division achieved sales of £34 million.
The proceeds from the sale will, initially, be used to reduce Group borrowings.
The Group will, during 2005, review the acquisition and investment opportunities
that are available. In the absence of value adding opportunities the Group will
consider returning some or all of the proceeds to shareholders.
Commenting on the sale, Graham Holden, Chief Executive, said:
'Marshalls have improved the operating performance and reduced the capital
employed in the Clay Products Division over the past two years. However, the
business is still only the fifth largest brick company in the UK with little
prospect of improving on this position. Having received a good offer we consider
it is in the best interests of our shareholders to sell the business at this
time.'
Marshalls is today issuing a trading update for the year ended 31 December 2004.
Enquiries:
Graham Holden Chief Executive Marshalls plc 01484 438900
Ian Burrell Finance Director Marshalls plc 01484 438900
James Fenwick Rothschild 0113 200 1900
Jon Coles Brunswick Group 0207 404 5959
Sarah Tovey Brunswick Group 0207 404 5959
This information is provided by RNS
The company news service from the London Stock Exchange
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