Macfarlane Group has sold its "non-strategic" manufacturing operations in the US and Mexico to Specialized Packaging Group for £3.8m in cash.
The firm said £3.6m would be paid immediately, with the remainder becoming payable in January 2008. The proceeds will be used to "further reduce" its borrowings.
California-based Macfarlane Western Foam Packaging Products and Macfarlane de Mexico in Tijuana, Mexico, which design and manufacture foam packaging components, had a combined operating profit of £200,000 on turnover of £18.2m to 31 December 2006.
The businesses had unaudited net assets of £5.3m at 30 September 2007.
Specialized Packaging Group, based in Hamden, Connecticut, is among the top 10 folding carton converters in the US and supplies packaging to the food and beverage, personal care, pharmaceutical, pet and baby care sectors.
The firm had sales of more than £67m in 2006.
Following its interim results last month, Macfarlane chairman Archie Hunter said its interests would be best served by concentrating on business activities with "good market positions and growth potential".
The directors estimate the sale will produce a "realised loss" of £1.7m in the current financial year ending 31 December.
The firm said £3.6m would be paid immediately, with the remainder becoming payable in January 2008. The proceeds will be used to "further reduce" its borrowings.
California-based Macfarlane Western Foam Packaging Products and Macfarlane de Mexico in Tijuana, Mexico, which design and manufacture foam packaging components, had a combined operating profit of £200,000 on turnover of £18.2m to 31 December 2006.
The businesses had unaudited net assets of £5.3m at 30 September 2007.
Specialized Packaging Group, based in Hamden, Connecticut, is among the top 10 folding carton converters in the US and supplies packaging to the food and beverage, personal care, pharmaceutical, pet and baby care sectors.
The firm had sales of more than £67m in 2006.
Following its interim results last month, Macfarlane chairman Archie Hunter said its interests would be best served by concentrating on business activities with "good market positions and growth potential".
The directors estimate the sale will produce a "realised loss" of £1.7m in the current financial year ending 31 December.
Source: packagingnews
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