Wednesday 11th June 2008
Management buys £12m subsidiary
A Yorkshire-based print and marketing communication services specialist has decided to sell its operations in Bath for an eight-figure sum.
Communisis plc is to dispose of the business to its management for more than £12 million. On completion some £8 million will be paid in cash with the balance due by July 2012.
The target business comprises Bath Business Forms, a manufacturer of business forms stationery, and Economailer, a specialised payroll products company. As part of the buy-out agreement, the Bath operation will continue to supply the Leeds-based group.
Communisis chief executive Steve Vaughan said the group’s Bath business does not fit with its strategy of focusing on its marketing communications interests. “We are therefore exiting this non-core part of our business for a cash consideration and in a non-dilutive way, leaving us free to concentrate on the higher value, growing parts of our business and accelerate their growth.”
In the year to January 2008, the target business made a pre-tax profit of £1.55 million.
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