Business
Sale of European Personal Care liquids
Sale of European Personal Care liquids.
About this update from Mcbride Plc
[{"type":"text","content":"\n \nRNS Number : 3461T McBride PLC 03 July 2018 \n\n3 July 2018\n \nMcBride plc\n \nSale of European Personal Care liquids\n \nMcBride plc, the leading European manufacturer and supplier of Co-manufactured and Private Label products for the Household and Personal Care market, today announces that it has agreed to sell its European personal care liquids business to Royal Sanders Group for a cash consideration of £12.5m.\n \nIn its half year results of 22 February 2018, McBride announced plans to launch an accelerated transformation programme to return its Personal Care & Aerosols (PCA) division to break even within 18 months. Since February, the Group has announced proposals to close it UK aerosols operations at Hull. As a result of this action and the absorption of certain volumes into our French aerosols operation, the Group expects its ongoing aerosols operation to be at break-even profitability levels by July 2019. \n \nAs the next step in the PCA transformation programme, the Group today announces that it has agreed terms with Royal Sanders for the disposal of the Group's European Personal Care liquids activities, which comprises two manufacturing sites at Bradford, UK and Ieper, Belgium, which supply customers with a range of personal hygiene, haircare and oral care products.\n \nThe proposed transaction, which is subject to customary closing conditions, will comprise the disposal of the trade and assets of the Group's European personal care liquids business for a cash consideration of £12.5m (subject to any post-closing working capital adjustments), payable on completion. In the 12 months to June 2017 the business generated revenues of £58.8m and an EBITA loss of £1.9m. Gross assets at 31 December 2017 were £19.8m. For the 12 months to 30 June 2018, the business is expected to generate revenues of £56.0m and an EBITA loss of £2.8m. Proceeds of the sale will be used to pay down Group net debt and settle transaction costs. The transaction is expected to complete during the last quarter of 2018. \n \n \nRik De Vos, Group Chief Executive, commented;\n \n\"The agreement to sell our European Personal Care liquids activities follows a comprehensive review of the business and marks the final element in the transformation plan for our European PCA...