Scapa sells US subsidiary
TECHNICAL tapes firm Scapa has sold a US-based unit, Scapa Holdings Georgia, for $250,000.
It has been bought by Industrial Legacy Holdings, part of the insurance and reinsurance specialist Armour Group.
The Ashton-under-Lyne-based group said Georgia’s business and assets were sold in 1999 and since then it has not traded.
But it has, “continued to commit considerable management time in the overseeing of its legacy liability litigation defence in the United States, incurring significant legal costs and administrative burden associated with the litigation”.
At the date of the disposal, Georgia’s net assets were $2.7m, including $8.2m in cash. The proceeds from the disposal will be used for working capital.