ICI surprises with pounds 425m sale of vehicle coatings arm
Thursday 29 April 1999
The sale, which surprised the City, brings debts at the chemicals to Duluxe paints group down to less than pounds 3bn. ICI is making a profit of pounds 190m on the sale, which will have a neutral impact on its earnings.
Analysts were taken aback by the sale because the auto coatings business was considered to be part of the core business of specialty chemicals and paints which ICI planned to retain. Until now, ICI has concentrated on selling off its industrial chemicals businesses.
Charles Miller Smith, promoted from chief executive to chairman last week, said: "The deal makes excellent sense from a value perspective and enables us to focus on enhancing our strong position in our core paints business."
Only two weeks ago ICI announced the pounds 1.7bn sale of three businesses to Huntsman, the privately-owned US chemicals company.
Last week Sir Ronald Hampel gave his last speech as chairman of ICI, attacking the media and shareholders for a dogmatic approach to corporate governance.
PPG, based in Pennsylvania, has been looking to expand its paints operations in Europe. Earlier this month, it agreed to buy ICI's vehicle coatings business in Germany for an undisclosed sum.
PPG last year lost a bid to buy Courtaulds to Akzo Nobel of the Netherlands.
Shares in ICI jumped 26.5p to to close at 673p. The sale is subject to regulatory approval and is expected to be completed by the middle of the year in Europe and the US.
- 1 Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
- 2 18th century sex toy found in 'toilet of sword fighting school' in Poland
- 3 US? China? India? The 10 biggest economies in 2030 will be...
- 4 'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
- 5 Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats
The only black face in the Ukip manifesto is on the page about overseas aid
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...