Ascot PLC
27 March 2001
Date: 27 March 2001
Contacts: Howard Dyer, Executive Chairman
Ascot Plc 020 7815 0805
David Bick
Holborn Public Relations 020 7929 5599
david.bick@holbornpr.co.uk
ASCOT PLC
Sale of Refrigeration Distribution Business for £22 million
Ascot Plc ('Ascot') announces that it has agreed terms with Wolseley Plc
('Wolseley') for the sale of Ascot's refrigeration distribution business,
Nationwide Refrigeration Supplies (NRS) (the 'Business'), to Wolseley.
Following a competitive tender process, the Business is to be sold to Wolseley
Centers Limited, a wholly owned subsidiary of Wolseley, debt free for a total
cash consideration of £22m.
The total consideration of £22m will be paid in cash and will be used to
reduce the net debt of the Ascot Group. £2.2m will be subject to retention
for 6 months in an account jointly controlled by Ascot and Wolseley to cover
any working capital adjustment or any claims under the warranties or
indemnities given by Ascot in connection with the sale. The consideration
will be subject to £ for £ downward adjustment if the level of working capital
of the Business as at completion is less than £13m. Completion of the sale is
expected to take place later today.
The aggregate net assets of the Business as at 31 December 2000, excluding
cash and debt, were £15.3m. Aggregate turnover and profit before interest and
tax for the year ended 31 December 2000 were £54.2m and £3.2m respectively.
The Business was acquired as part of Ascot's acquisition of the Suter Group in
1996. It is a supplier and distributor of commercial refrigeration and air
conditioning equipment and also custom builds enhanced condensing units and
packs.
Executive Chairman of Ascot, Howard Dyer commented:
'The sale of the NRS business, following on from the sale of four engineering
businesses in October last year, progresses our declared strategy of focusing
the Ascot Group on its core Speciality and Fine Chemicals Divisions.'
- ENDS -