£10m deal sees division head for emergency exit
Castings and engineering group Chamberlin has sold Exidor, a leading supplier of specialist emergency exit hardware and door furniture, in a £10m deal.
The Walsall-based company said the proceeds of the disposal to ASSA ABLOY will be used to reduce group debt and to provide additional working capital.
The cash consideration represents approximately 180% of Chamberlin’s market capitalisation based on the group’s closing mid-market share price of 70 pence per ordinary share as at 18 December.
Exidor employs approximately 70 staff from its premises in Cannock, all of whom will be retained under the ownership of ASSA ABLOY.
Turnover in the year to 31 March 2018 was £7.52m and operating profit was approximately £651,000. Total net assets as at 31 March 2018 were approximately £2.01m.
Chairman Keith Butler-Wheelhouse said: “This transaction will enable Chamberlin to restructure its balance sheet and will provide additional working capital. We can look forward to the further development of our core operations with greater certainty and with considerable optimism.
“We believe that ASSA ABLOY, who are well positioned to support the ongoing growth and development of the business, represents the ideal owner for Exidor.”