Yule Catto & Co PLC
7 August 2001
YULE CATTO & COMPANY PLC
Yule Catto acquires 100% control of the Harlow Chemical Company
Yule Catto & Co plc (Yule Catto) today announces the acquisition of 50% of the
Harlow Chemical Company (Harco) from its joint venture partner Clariant.
Harco is the leading UK supplier of emulsions for use in paint and adhesive
applications and has a major global position in the manufacture and sale of
stabilisers used in the manufacture of PVC. In 2000 the company had a
turnover of £70.8m and posted a profit before tax of £11.5m.
The purchase price of £54.6m represents an EV/EBITDA ratio of 8 and will be
paid in cash from existing credit facilities. The net assets of the company
at 31 December 2000 totalled £18.4m and aggregate borrowings were £10.1m at
that date.
The acquisition brings to an end a joint venture arrangement involving Harco
with which Yule Catto companies have been involved for nearly 40 years.
It is anticipated that this acquisition will be earnings enhancing in the
first twelve months.
Commenting on the transaction, Alex Walker, Chief Executive said:
'The acquisition of the outstanding portion of Harco is another important step
in Yule Catto developing a global presence and manufacturing capability in
water-based polymers. We have been able to take this important step on
sensible financial terms and with 100% control of the Harco business we can
now release its full potential utilising the experience and expertise of the
existing management. The acquisition follows the earlier purchase of full
control, and successful consolidation, of the SB latex operations of Synthomer
and creates an exciting portfolio of speciality polymers to meet the needs of
our customers world-wide.'
7 August 2001
ENQUIRIES:
Yule Catto Tel: 01279 442 791
Alex Walker, Chief Executive
Sean Cummins, Finance Director
College Hill Tel: 020 7457 2020
Gareth David Email: gareth.david@collegehill.com
Lisa Pearson Email: lisa.pearson@collegehill.com