St. Ives PLC Disposal of Clays Ltd. (6605M)
May 01 2018 - 2:00AM
UK Regulatory
TIDMSIV
RNS Number : 6605M
St. Ives PLC
01 May 2018
1 May 2018
This announcement contains inside information.
St Ives plc
("St Ives" or the "Group")
Disposal of Clays Ltd. ("Clays")
St Ives, the international marketing services group, announces
that it has completed the disposal of Clays, its legacy book
production and distribution business, to Elcograf S.p.A., a major
European printing group (the "Disposal").
The total consideration for the Disposal, after costs, was
GBP20.0 million which was based on an enterprise value of GBP23.8
million (subject to cash, debt and working capital adjustments),
and was paid in full in cash on completion. In addition, St Ives
has retained the freehold to Clays' operating site in Bungay, UK,
which Clays will continue leasing from the Group on a long-term
basis.
St Ives will also retain the pension liabilities associated with
Clays and has agreed to make a contribution of GBP2.5 million from
the proceeds of the Disposal to the St Ives Defined Benefits
Pension Scheme. The balance of the net proceeds of the Disposal
will be used to reduce the Group's debt.
Clays prints monochrome and colour books and provides associated
distribution services to UK and overseas publishers. For the year
ended 28 July 2017, Clays had gross assets of GBP34.9 million and
reported GBP77.7 million of revenue and a loss before tax of GBP1.6
million.
The Disposal will strengthen St Ives' balance sheet and result
in a more focused Group, consistent with management's long-term
strategy to refocus its operations on its Strategic Marketing
segment.
Matt Armitage, Chief Executive of St Ives, said:
"Today's sale of Clays is a major milestone for St Ives, which
will allow our senior management team to focus entirely on growing
the Group's Strategic Marketing businesses, both in the UK and
internationally.
"Over fifty years ago, St Ives was founded as a print business.
But as our markets and customer preferences changed, we too
evolved, reducing our exposure to the commoditised print markets
while embracing the digital world, becoming a leader in the
marketing services industry through acquisition and organic
growth.
"This transformation began in 2010 and, following the recently
announced disposals of our legacy print businesses, we are now a
more focused strategic marketing Group, well equipped to deliver
the exciting next stage in St Ives' evolution."
"We would like to take this opportunity to thank our colleagues
from Clays for all their hard work and dedication over the years,
and we wish them every success in the future."
- Ends -
For further information please contact:
St Ives plc 020 7928 8844
Matt Armitage, Chief Executive
Brad Gray, Chief Financial Officer
MHP Communications 020 3128 8788
Tim Rowntree / Giles Robinson / Luke Briggs
This information is provided by RNS
The company news service from the London Stock Exchange
END
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