From London International's web page:
LIG sells Cook Bates
4th March 1998
London International Group plc (LIG) today announced the sale of substantially all of the assets of Cook Bates, its non core USA manicure implements business, for approximately œ3 million (US$4.8 million) to Pacer Technology, a California based consumer industrial and automotive products company.
Cook Bates, which includes the GEM and DIAMOND DEB brands, had been acquired by LIG as part of its health and beauty division in 1978.
Commenting on the announcement, Nick Hodges, Chief Executive, said:
"The sale of Cook Bates demonstrates still further our determination to focus on our core businesses of gloves and condoms, and dispose of our less profitable non core businesses.
"We are continuing to invest worldwide with a major emphasis on the USA. Regrettably the sale will result in the loss of 75 jobs in Venice, Florida and Spartanburg, South Carolina."
The sale will result in an exceptional charge of approximately œ12 million (US$19.2 million), of which œ8.6 million (US$13.8 million) relates to goodwill previously written off. The balance includes provision for the loss of jobs; the cash element of the total charge is not expected to exceed œ1.4 million (US$2.2 million).
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"Less profitable non core business". The next earnings report will be interesting concerning what "less profitable" means, and what Pacer can do with it. |
