 | Yule Catto & Co plc (“Yule Catto” or the “Company”) is pleased to announce that it has exchanged conditional contracts with Vivimed Labs Limited (“Vivimed”) for the sale of the entire issued share capital of James Robinson Limited and other associated assets (together “James Robinson”) for a consideration of $21.15 million plus working capital of approximately $4.5 million. The consideration will be paid as to $17.15 million plus the working capital amount in cash at completion and a further $4 million into escrow pending successful completion of certain product transfer arrangements.
The completion of the sale is conditional on, amongst other things, Vivimed obtaining shareholder approval for the acquisition which is expected to be obtained by mid April 2008.
James Robinson carries on the development, manufacture and supply of photographic and photochromic chemicals and hair and other dyes. In the twelve months to 31 December 2006 it had sales of £17.8 million, an operating profit of £0.82 million and gross assets of £3.0 million.
Vivimed is a leading manufacturer of Specialty Chemicals for the Personal Care Industry. This range covers Oral Care, Sun Care, Skin Care. Hair Care, and Preservatives.
The acquisition of James Robinson Ltd compliments Vivimed’s existing activities and growth plans for the personal care market. In addition, it provides Vivimed with new business opportunities within the high growth photochromic dye markets.
A key facet of the acquisition is the R&D and technical expertise within James Robinson and the brand equity within the business and market access. Vivimed will support this with its cost effective manufacturing base in India to offer enhanced customer value.
The James Robinson management team led by Dr Richard Smith will continue to run the business.
In addition, Yule Catto anticipates disposing of its interest in James Robinson India (Private) Limited to its joint venture partner following the completion of the sale of James Robinson for a consideration of some $1.5 million.
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11 February 2008 |