Shower manufacturer exits Australia following subsidiary sale

SHOWER, tile and bathroom accessories manufacturer Norcros is selling its Australian business for around £4m,
 
The deal to sell Norcros Industry (Pty) Ltd, is conditional on the acquirer, a listed Malaysian-based company called Kim Hin Industries Berhad, achieving shareholder approval.
 
For the year ending March 2013, thr Australian unit reported revenue of A$15.9m and operating profit of A$0.3m.

Norcros – which owns Nuneaton-based Triton Showers and Stoke-on-Trent-based Johnson Tiles – said the deal would generate a non-cash loss of approximately £1.6m, which will be disclosed as part of the result from discontinued operations in the current financial year.
 
The company said it intends to use the proceeds from the transaction to pay down existing borrowings.
 
Chief executive Nick Kelsall said: “The disposal of our Australian business represents a full exit from the region, and allows the group to focus its resources on its strategic objectives of organic and acquisitive growth in the UK, Africa and the Middle East.”