Macfarlane Group PLC
1 December 1999
MACFARLANE GROUP DISPOSES OF DANIEL MONTGOMERY & SON
John Ward, Chairman of Macfarlane Group PLC, the Scottish
based packaging group today announced :-
'I am pleased to report that Macfarlane Group has agreed terms
for the sale of Daniel Montgomery & Son Limited, the
manufacturer of injection moulded closures for the spirits
industry. As announced in September 1999, the household
product range will be consolidated in the plastics division of
Macfarlane Group.
The Company has been sold to Alucapvit Spa, an Italian based
manufacturer of closures throughout Europe, for a total cash
consideration of £2.0 million (net of attributable expenses).
The net assets on disposal amount to £6.5m and after further
asset write-downs of £2m being effected a loss on disposal of
£6.5m will be incurred.
Daniel Montgomery's spirits' business employs 121 people and
has an annual turnover of over £7 million. The company's
operating losses for calendar year 1999 are expected to be
£1.2 million.
As part of the strategic review of the Company's operations
being carried out by Iain Duffin, our Chief Executive, it was
recognised that Daniel Montgomery required to expand overseas
or become part of a larger concern to satisfy increasing
demands from major spirits customers to be supplied from a
number of locations not just in Europe but also on a global
basis. Alucapvit Spa. will provide such an opportunity for
Daniel Montgomery and we wish both companies every success in
the future.
Further details of our strategic review, providing details of
the progress achieved in the restructuring of the Company's
businesses into four focused business divisions, will be
announced on 7 December 1999'.
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Further information:
John M Ward Chairman 0141 333 9666
Iain D Duffin Chief Executive 0141 333 9666
Press and Media:
Gordon Beattie Beattie Media 01698 787878