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[December 2006]
Cookson Announces Double Disposal in Trading Update
Cookson Group PLC has issued its pre-close trading update ahead of its 2006 full year results to be announced on 13 March 2007.
End-market trends and the group’s overall trading performance have remained in line with the expectations set out in the Trading and Strategic Plan Updates announcement made on 7 November 2006.
With effect from 18 December 2006, Cookson entered into an agreement to sell Monofrax, a fused-cast refractories business which forms a separate part of the Ceramics division, to RHI AG (Vienna, Austria) for US$45 million (£23 million). Completion of the transaction, which is conditional on satisfactory approval of the relevant antitrust authorities, is expected during the first quarter of 2007. The purchase price will be satisfied on completion by an assumption by the acquirer of pension, retirement, medical and other liabilities, estimated at US$10 million (£5 million), with the balance satisfied in cash, estimated at US$35 million (£18 million*).
Monofrax is based in New York State, USA and manufactures high density ceramic blocks used primarily to line glass-making furnaces in order to contain molten glass. For the year ended 31 December 2005, Monofrax had revenue of £25 million and a trading profit of £3 million.
Additionally, on 18 December 2006, Cookson sold its Florida, USA based PVC Cements business, which forms part of the Assembly Materials sector of the Electronics division, to a group of private investors with holdings in packaging and speciality chemical companies for a cash consideration of US$3 million (£2 million*). The cements are used primarily as a jointing product for PVC piping.
For the year ended 31 December 2005, PVC Cements had revenue of £5 million and reported a breakeven trading performance.
Commenting on these disposals, Nick Salmon, Chief Executive of Cookson, said: "Monofrax and PVC Cements are non-core businesses where we have relatively small market share positions and their disposal is part of our strategy to focus our portfolio on businesses where we have leading market positions."
www.cooksongroup.co.uk
ENDS