Quoted to Private - Disposals - Exit Strategies - Funding - £1m - £30m
Focus Dynamics Samuel Eden
EXTEL COMPANY NEWS: SHERWOOD GROUP PLC: (NEWSWEB) SHERWOOD GROUP (TRADING) LTD ANNOUNCED AGREEMENT TO SELL SOCK MANUFACTURING BUSINESS, TRADING AS SAMUEL EDEN TO BRECKENBURN ACQUISITIONS LTD.
Extel Company News - United Kingdom; Apr 03, 2000
Sherwood Group (Trading) Ltd announced agreement to sell sock manufacturing business, trading as Samuel Eden to Breckenburn #
Acquisitions Ltd.
REASON FOR SALE: Disposal of Samuel Eden business is in line with Company's strategy of refocusing on its core garment and lace businesses. Although consideration is below net book value of assets divested, board believes that disposal is in Company's best interests since it will enable withdrawal from business with declining profitability, on reasonable terms. Net disposal proceeds will be used to reduce Company's short-term borrowing requirement, consistent with policy of debt reduction.
CONSIDERATION: Consideration is GBP5.4m in cash, payable on completion, subject to 2 adjustments. First adjustment will be equal to amount by which value of stock and work in progress at completion is above or below GBP3m. Second will be equal to amount of earnings before interest, tax and depreciation of Samuel Eden for period from 03-Apr-2000 to completion date, so that these earnings are effectively for account of Breckenburn Acquisitions Ltd.
EGM: In view of size of disposal, it is conditional upon shareholders approval. Notice of EGM will be posted as soon as is practicable.
Sherwood Group PLC - Re Subsid's Proposed Disposal
RNS Number:3614I
Sherwood Group PLC
3 April 2000
Trans/sherwood/apple announcement.doc
Sherwood Group PLC ('Sherwood' or the 'Group')
Proposed disposal
Sherwood announces that on 31 March 2000 its wholly-owned subsidiary,Sherwood Group (Trading) Limited,
conditionally agreed to sell its sock manufacturing business, trading as Samuel Eden, (other than its debtors,creditors and
cash) to Breckenburn Acquisitions Limited ('Breckenburn'),a subsidiary of Breckenburn Limited, for £5.4 million in cash,
payable on completion, subject to two adjustments. The first adjustment will be equal to the amount by which the value of
stock and work in progress at completion is above or below £3 million. The second will be equal to the amount (whether
positive or negative) of the earnings before interest,tax and depreciation of the Samuel Eden business for the period from
3April 2000 to the completion date, so that these earnings are effectively for the account of Breckenburn.
In view of the size of the disposal in relation to the Group, the disposal is conditional upon Sherwood shareholders' approval. A circular setting out the details of the proposed disposal and a notice convening an Extraordinary General Meeting of Sherwood will be posted to shareholders as soon as is practicable.
The disposal of the Samuel Eden business is in line with Sherwood's strategy of refocusing the Group on its core garment and l ace businesses. The net assets of the Samuel Eden business (excluding debtors, creditorsand cash) as at 31 December 1998 were £10,322,000 and the operating profit before interest and tax for the year ended 31 December 1998 was £1,428,000. Although the consideration is below the net book value of the assets divested, the Sherwood Board believes that the disposal is inthe best interests of the Group since it will enable the Group to complete, on reasonable terms, its withdrawal from a business with declining profitability. The net disposal proceeds will be used to reduce the Group's short-term borrowing requirement, consistent with the Group's policy of debt reduction.ENDDISMGGGDLFRGGZGMMMM
Sherwood Group PLC - Re Subsid's Proposed Disposal
Breckenburn Limited
It was announced today that Sherwood Group (Trading) Limited, a subsidiary of Sherwood Group plc ("Sherwood") has agreed to sell the business trading as Samuel Eden ("Samuel Eden" or "the Business") to a subsidiary of Breckenburn Limited ("Breckenburn") with a shareholding being retained by the management. The sale is conditional on the approval of the shareholders of Sherwood at an Extraordinary General Meeting, expected to be held towards the end of April.
Samuel Eden is the largest sock manufacturer in the UK with particular emphasis on the manufacture of character socks under licence. The Company supplies most of the major UK retail chains as well as substantial exports to continental Europe from its plant in Sutton-in -Ashfield Nottinghamshire where 375 staff are employed. In the year to 31 December 1998, the date of the last audited accounts of the Sherwood Group, the Business generated a profit before interest and tax of £1.4m on sales of £17.0m. The assets to be sold were valued at 31 December 1998 at £10.3m. The consideration is £5.4m payable in cash on completion subject to two adjustments. The first adjustment will equal the amount by which the value of stock at completion is above or below £3m. The second will equal the amount of the earnings before tax and depreciation of the Business between 3 April 2000 and the completion date, so that these earnings are effectively for the account of Breckenburn.
The subsidiary of Breckenburn acquiring the Business will change its name on completion to Samuel Eden and Son Limited. Breckenburn Limited is owned by Thistledown Investments Limited, a provider of venture capital controlled by Sandy Anderson, a financier and entrepreneur with particular experience in asset finance and extensive interest in the leisure sector.
In addition to Breckenburn, equity for the new company will be provided by the existing management team of Ted Swordy, Patrick Bailey, David Holdsworth and Paul Shipley, and also by Bill Eastwood, who will become non-executive Chairman. Thistledown Investments will provide subordinated loan finance. Debt Finance will be provided by Bank of Scotland.
Advisers to Breckenburn were Eastwood Anglo-European Investments Limited, Shoosmiths Nottingham (legal), and Ingram Forrest Associates Sheffield (financial due diligence).
Contact: Bill Eastwood 01636 636132
Samuel Eden & Son Limited
The business will continue under the name of Samuel Eden and Son Limited at its premises in Sutton-in-Ashfield and there will be no change to the existing management or staff.
Samuel Eden is the largest sock manufacturer in the UK with particular emphasis on the manufacture of character socks under licence. The Company supplies most of the major UK retail chains as well as substantial exports to continental Europe. Sales in 1999 were £20m and a total of 375 staff is employed.
Derby based Thistledown Investments is a venture capital provider and is controlled by financier and entrepreneur Sandy Anderson.
Ted Swordy, Managing Director, said:
"We are delighted by this development. Samuel Eden will remain a strong independent business entirely focused on satisfying
our customers' needs. It is our ability to give our customers continual access to the latest in character design and to
apply this efficiently to a complete range of quality socks that has ensured our success in the past and will continue to
do so. My established management team of Patrick Bailey, Commercial Director, Paul Shipley, Production Director and David
Holdsworth, Finance Director remain in place and I am pleased that local businessman Bill Eastwood will join the Board as
non-executive Chairman with Jason Melrose representing Thistledown as a non-executive director. We look forward to
continuing to work with our customers, suppliers, licensors and employees to build on past success and develop the
business further in the future."
Contact: Ted Swordy 01623 553521
