IWP's Proposed Disposal of the Skiffy Group
IWP International plc (“IWP” or ‘the Company’ )
IWP, the manufacturer and distributor of personal care products in the United Kingdom and Continental Europe, today announces that it has conditionally agreed to sell the Skiffy Group (including Johan Putzfeld) to Bunzl plc (“Bunzl”), an international distribution and outsourcing group, for a total consideration of €28.1 million in cash. Due to the size of the Skiffy Group relative to the Company, the disposal is conditional on the approval of IWP shareholders.
Commenting on the disposal, the CEO of IWP Mr. Jim Murphy said:
“The sale of the Skiffy Group, which was indicated in our interim results statement, is a significant step in focusing our activities on our core Personal Care Business. We are satisfied with the consideration achieved, which will be used principally to reduce debt”.
INFORMATION ON THE SKIFFY GROUP
Skiffy Group operates primarily in the plastic components market in 76 countries across all continents. Its four principal markets are France, Netherlands, Germany and UK.
Skiffy offers over 6,400 plastic and related metal components. Its product range includes washers, bushings, caps, plugs, spacers, clips, knobs, buffers, handles and fasteners. The products are suited for applications in the general manufacturing sector, as well as repair and maintenance services.
In the year ended 31 March 2003 the Skiffy Group earned an operating profit of €3.5 million on turnover of €12 million. As at 30 September 2003, the Skiffy Group had net assets of €10.9 million.
BACKGROUND TO AND REASONS FOR THE DISPOSAL
Over the last few years, IWP has restructured its business in such a way so as to concentrate on its core Personal Care Business. During that period, IWP disposed of several non-core businesses and, in July 2002, disposed of a majority of its shareholding in the Household Products Division.
The current strategic direction of the Company was clearly laid out in the circular to Shareholders at the time of the disposal of the Household Products Division in July 2002. Specifically, the Directors stated that the Company’s strategy was to focus its managerial and financial resources on expanding its Personal Care Business.
As Skiffy operates primarily in the plastic components market, its activities are peripheral to IWP’s core competencies within the Personal Care Business and, as such, the Directors believe a disposal of Skiffy would be in the best interests of the Company.
USE OF PROCEEDS
The total proceeds of the Disposal net of disposal expenses will be used principally to reduce debt.
TIMETABLE
Completion of the Disposal is conditional, inter alia, upon Shareholder approval. In addition, before completion the German competition authorities will need to be notified about the transaction. Completion is also conditional on no material breach of warranties, and no fact or circumstance arising that materially affects the business of the Skiffy Group between signing and Completion date.
If the conditions are not met, or waived, by the Completion date, the Disposal Agreement will terminate unless otherwise agreed by the parties.
A circular which will include a notice convening the Extraordinary General Meeting will be posted to shareholders in due course.
ENQUIRIES
Goodbody Corporate Finance Bobby O’Brien 00353 1 667 0420
Murray Consultants Tom Byrne 00353 1 498 0300
Goodbody Corporate Finance, which is regulated in Ireland by the Irish Financial Services Regulatory Authority under the Investment Intermediaries Act, 1995, is acting exclusively for IWP and no one else in connection with the Disposal and will not be responsible to anyone other than IWP for providing the protections afforded to their respective clients or for providing advice in relation to the Disposal.
