Business
Disposal of Engineering Div
Disposal of Engineering Div.
About this update from Mj Gleeson Plc
[{"type":"text","content":"\n Gleeson(M J)Group PLC\n19 October 2006\n\n\nThursday 19 October 2006\n\n \n\n \n\n M J GLEESON GROUP PLC\n\n \n\n £36.0m disposal of Engineering Division \n\n \n\nAs an important part of the implementation of the Group's strategic review,\nwhich is now nearing completion, Gleeson announces the disposal of its\nEngineering Division+ to Black & Veatch Corporation, a US-based global\nengineering, consulting and construction company, for a cash consideration of\n£36.0m.\n\n \n\nThe Engineering Division is an engineering services business predominantly\ninvolved in delivering water-related construction through alliancing with water\nbusinesses. Its main office is situated in Leatherhead, Surrey and it operates\nthroughout England and Scotland, with 950 employees working out of seven\nbusiness units.\n\n \n\nThe Engineering Division assets generated an unaudited operating profit of £2.8m\nin the year to 30 June 2006. As at 30 June 2006, the Engineering Division had\ngross assets of £40.1m, including net cash of £21.1m.\n\n \n\nThe disposal has resulted in a cash balance transfer to Black & Veatch of £14.5m\nto zero the negative net assets (excluding cash) of the Engineering Division at\ncompletion, subject to any completion accounts adjustments. Hence, the net cash\ninflow to Gleeson as a result of the transaction is £21.5m (before tax and\nexpenses), which will be used to reduce its indebtedness.\n\n \n\nThe Division is led by Tony Collins, 50, who has 28 years' service with Gleeson.\nHe became Divisional Managing Director in October 2001 and oversaw the\nDivision's highly successful Asset Management Programme 4 strategy, which\nresulted in all existing AMP3 Alliances (with South West Water, Thames Water and\nYorkshire Water) being renewed and two new Alliances (with Severn Trent Water\nand Northumberland Water) being added. In addition, in 2006, the Division agreed\nan extension to the existing Quality & Standards 2 Programme with Scottish\nWater.\n\n \n\nTony is ably supported by his leadership team, comprising Commercial Director\nCharlie Boyle and Executive Directors Steve Miller and Mike Robinson, all of\nwhom are long-serving employees, with a total of 65 years' service with Gleeson\nbetween them.\n\n \n\nDermot Gleeson, Chairman, said 'I am delighted that we have found a purchaser\nfor our highly respecte...