Yorkshire buys US dye operations for pounds 54m

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The Independent Online
TEXTILE DYES and chemicals maker Yorkshire Group said yesterday it had become the fourth-largest player in the world dyes market after paying US CK Witco $86.5m (pounds 54m) for a clutch of its dyes operations.

Yorkshire is paying the US polymer and specialty chemical producer $78m cash and the balance in shares for its worldwide textile dyes business and its European industrial dyes operations. Yorkshire said cost efficiencies and operating synergies would result in savings of around pounds 5m a year within two years. The deal should significantly enhance earnings before goodwill and exceptional charges in the year to December, it said. The cash consideration of the purchase price will be funded from existing cash resources and new borrowing facilities.

Stuart Wallis, Yorkshire chairman, said: We are confident of the longer- term prospects for Yorkshire ... [and] will be well placed to exploit opportunities likely to arise from further industry rationalisation".

Yorkshire shares traded at 100.5p before being suspended..