Avon Rubber PLC
22 August 2006
22 August 2006
Avon Rubber p.l.c.
SALE AND LEASEBACK OF HAMPTON PARK WEST
At the time of our Interim Statement on 22 May 2006 we said that the proposed
disposal of the Automotive business represented an opportunity to review the
appropriate capital structure for the continuing Group.
As part of this process the Board announces that Avon Rubber p.l.c. ('Avon' or
the 'Group') has sold its freehold interest in the property at Hampton Park
West, Melksham, Wiltshire to Clerical Medical Managed Fund, a client of Insight
Investments for £12.36 million. The proceeds were paid in cash on completion and
have initially been applied to reduce indebtedness. The site is the Group's
Corporate Headquarters and primary UK manufacturing factory base for its
Protection and Engineered Products business.
Avon has taken a 15 year full repairing and insuring lease of the building from
completion of the sale with a break option for Avon after 10 years. The lease is
at a rent of £0.8 million p.a., equating to £5 per sq ft. The property has a
carrying value of £9.0 million with a depreciation charge of £0.2 million p.a.
The transaction is expected to be earnings neutral.
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For further enquiries, please contact:
(Local/Trade Press) 01225 896300
Fiona Stewart
Weber Shandwick Square Mile
Richard Hews 020 7067 0700
Rachel Taylor
Stephanie Badjonat
NOTES TO EDITORS: Avon Rubber p.l.c. is an international polymer engineering
group adding value through material, manufacturing and industry sector
expertise. The Group is currently capitalised at approximately £50.9 million.
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