Coats sells Dyncast for pounds 322m

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The Independent Online
COATS VIYELLA, the textiles group, has sold Dyncast, its precision engineering division, to a management buyout backed by Cinven free of debt for pounds 322m cash. Dyncast, based in Alcester, makes components in metal and plastics for the car, telecoms and computer industries. It has 37 factories in 19 countries, and employs 6,000 people.

Dyncast made operating profits of pounds 30m and accounted for 23 per cent of group profits in 1997, but was earmarked for sale in December. The proceeds will be used to reduce group debt, Coats chairman Sir David Alliance said.