Brammer's £23m European sell-off
INDUSTRIAL services group Brammer is to sell its European calibration and equipment management business to French-owned Air Liquide for £22.5m.
It is also in talks to sell its European rental and UK calibration businesses to an unknown bidder, believed to be a British company, within the next four weeks.
Some of the cash raised from the sale, estimated to result in an exceptional profit of £7.6m , will be used to make 'further provisions in respect of the rental inventory assets which may offset the exceptional pre-tax profit on the disposal'.
Although the amount needed for these provisions has not been revealed, the remaining cash will be used to reduce debt and to expand the business services side of Brammer. Its shares added 5p to 138 1/2p.
Chief executive Ian Fraser said Brammer is the European market leader in providing emergency spares for a variety of businesses, ranging from main bearings for giant machines to industrial belts, within 24 hours.
Trading in the second half ending this month has been slower, with the group's rental business also facing difficult conditions. The group is on a cost-cutting programme and Fraser says that other asset disposals have been made at 'satisfactory prices'.
