Diploma PLC
20 March 2001
Diploma PLC has sold Henry Whitham & Son Limited and its 80% holding in Carbon &
Alloy Metals, Inc., the Group's major Special Steels businesses, for a cash
consideration of £11.1m before costs.
The consideration will be subject to an adjustment based on net asset value at
completion. The companies' profits before interest and tax for the year ended 30
September 2000 were £0.2m; attributable net assets at completion are estimated
to be £12.5m. All relevant goodwill has already been written off through the
Group's profit and loss account.
The divestment is in line with Diploma's strategy of expanding and investing in
specialised distribution businesses serving industries with long term growth
potential while reducing dependence on more mature and cyclical businesses.
The proceeds of the sale will be added to the Group's cash resources. There is
not expected to be any tax charge on the sale. The Group retains ownership of
A.G. (Alloys) Limited.