DST Systems update on UK sale
Thursday, March 2, 2017
US group DST Systems has confirmed that it expects the sale of its UK customer communications business to be completed by the summer.
DST Systems put the UK operation up for sale last June as part of a strategic reshaping at the $1.5bn (£1.2bn) turnover group. It has already sold its North American customer communications business.
In its most recent financial filing DST Systems said that the UK management team was handling the divestment here on the group’s behalf.
“During the second quarter 2016, our board of directors approved a plan for management to pursue the divestiture of our United Kingdom Customer Communications business, which we anticipate will be completed within the required one-year period,” DST Systems stated in the filing.
PrintWeek understands that detailed presentations have been made to a number of potential purchasers.
DST UK chief executive Jeremy Walters said he could not comment on the details of the sale process, but thanked stakeholders for their support.
“It is still an ongoing process and we are grateful for the support of employees and customers as we go through this period,” he said.
The award-winning UK customer communications operation is the UK’s largest direct mail printer, with services spanning data, insight and printing for a range of clients including blue-chip brands, financial services, and government. The firm posted sales of £166.2m and gross profit of £42.9m in its most recent financial year, to 31 December 2015.
As part of the process DST Systems has also made a $17m write-down in the value of goodwill and certain long-lived assets at the UK operation, which is now treated as discontinued in its group accounts alongside the other businesses it sold as part of the strategic review.