News
St Ives set to sell off US division in MBO deal
St Ives has conditionally agreed to sell its US division, St Ives (USA), to a management buyout team led by US chief executive and chairman Wayne Angstrom for $39m (£26.8m).
The division, which achieved an operating profit of £2m on revenues of £47.9m last year, accounts for around 11% of group turnover, according to the company's latest annual report.
St Ives said that the proposed sale, which is subject to shareholder approval, would realise significant value for the company and allow it to reduce group indebtedness, which stood at £33.1m as of 1 August 2008.
Miles Emley, chairman of St Ives, said: "The group currently faces a challenging trading outlook with increasing pressure on margins resulting from prevailing volatility in demand and rising input costs.
"The [sale] will allow a significant reduction in group borrowings and enable the board to focus on ensuring the continued success of St Ives' core UK businesses."
St Ives (USA) is focused on magazine, point-of-sale and general commercial printing for the North American market. It employs 564 people and, as of 1 August 2008, had gross assets of £41.7m.
The disposal, which is expected to conclude by 21 January, follows the sale of St Ives' only other overseas subsidiary, Netherlands-based St Ives Uden, last year.
In its interim management statement, St Ives said that its US business faced "significant challenges due to volatile demand within an oversupplied market".
St Ives added that the move was "consistent with the group's strategy of focusing on its core operations".
Comments
- 05 January 2009
Excellent news for St Ives shareholders and the UK operations.
2009 will be a ` tough` year and St Ives are preparing to implement `suitable`methods to be successful with `Recession - Busting Solutions`.
Excellent people and business models will see St Ives be a winner.
Colin Thompson
Cavenadih
www.cavendish-mr.org.uk
mark hamblin - 06 January 2009
mmmmmmm
Penny Pincher - 07 January 2009
That seems like a small debt for such a large company so I can't see that as being the main driver? Anyone have insight?
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