Coats to take loss on 'difficult' sale of EMEA Crafts unit
The threadmaker first announced the sale of its Europe, Middle East and Asia crafts unit for $US10 million on February 19.
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Coats Group, the company that grew out of diversified investor Guinness Peat Group [NZX: GPG], says the sale of its EMEA Crafts business to Aurelius Group will be completed on Friday although the loss on sale won't be announced until its first-half results, due on August 3.
The UK-based threadmaker first announced the sale of its Europe, Middle East and Asia crafts unit for $US10 million on February 19. Today it described the sale as "a complex, multi-jurisdictional transaction," which had been completed "against a backdrop of increasingly poor market conditions which have affected the trading performance of EMEA Crafts."
"Accordingly, Coats has agreed to a nominal final consideration payable to Coats compared to an original consideration of $US10 million," it said in a statement. "An amount of cash, broadly in line with the original terms of the sale, will be retained within the business being sold, which will result in the transaction being cash negative. The precise quantum of the loss on disposal will be determined on completion and reported in the 2015 full year results."
The EMEA Crafts business would be listed as a discontinued item in the first-half results, it said.
In February, chief executive Paul Forman said the sale "better positions Coats for future profitable growth and allows us to focus management attention on our high performing global industrial and strong Americas crafts businesses."
The shares last traded at 60.5c on the NZX.
(BusinessDesk)
Jonathan Underhill
Wed, 29 Jul 2015
Wed, 29 Jul 2015
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
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Coats to take loss on 'difficult' sale of EMEA Crafts unit
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