Charter sells main stake in engineering for pounds 194m
The sale, which was in line with expectations, was flagged at Charter's first-half results announcement in September and allows the company to focus on Howden, its gas-handling division, and Esab, its cutting and welding business.
"We are pleased to announce that we have sold the majority of our specialised engineering divisions," Nigel Smith, Charter chief executive, said yesterday. "This represents a fundamental step in the restructuring of Charter..."
The group said that it would use the proceeds of the deal to cut its levels of debt, invest in its remaining businesses and, possibly, to buy back more of its own shares.
Charter said that Fountainfrost, backed by Candover, would take over Pandrol, which makes rail-fastening systems; Nederman, which makes fume, gas and dust-extraction systems; and UK Aerospace and Defence, a trio of businesses which make aircraft components.
In the year to December, the businesses made operating profits of pounds 25m on sales of pounds 178m. Their net assets were valued at pounds 41m.
Geoff Lodge, the former Charger managing director, who led the buy-out, said: "Each of the businesses has substantial growth prospects and, with Candover's support, we plan to capitalise on these."
The deal comes after Charter moved to accelerate a three-year restructuring to combat increasing competition, bringing forward deals from 2000 to this year. In September, Charter announced the loss of 700 jobs to cut costs as first-half pre-tax profits slid 37.1 per cent to pounds 28.1m.
Charter shares, which in April traded as high as 470p, ended 2.5p firmer yesterday at 315p. The deal is conditional on shareholder approval.
- 1 The Boy in the Dress, TV review: David Walliams' Boxing Day treat is a celebration of being different
- 2 Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
- 3 Andy Murray takes to Twitter to show off his Christmas jumper
- 4 Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
- 5 Top 10 travel destinations for 2015: From Haiti and Alaska to Namibia and Iceland
PlayStation and Xbox hacked by Lizard Squad
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
UK weather: Travel chaos continues as King's Cross train delays add to snow on roads
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...