Kelda announces today that it has sold the Alcontrol Group to Bridgepoint Capital Limited for total gross consideration of up to £72.25 million.
The sale reflects Kelda's strategy, following its strategic review announced earlier this year, to focus on its water and waste management operations and to dispose of non-core businesses.
James Newman, Deputy Chief Executive of Kelda, said: "The sale of the Alcontrol business is a major step towards the implementation of our planned strategy of focusing on our water and waste interests. We expect to make further disposal announcements in due course."
The transaction has been effected by the sale of the share capitals of Alcontrol AB, Alcontrol BV, Biochem Food BV, ACS Food Analysis Ltd and Geochem Group Ltd, and the sale of certain assets and liabilities of the UK business of Alcontrol.
The proceeds of the sale will be used to reduce Kelda's net debt.
Alcontrol is a leading analytical testing laboratories business operating in the environmental and food markets in the UK, Holland and Sweden.
In the year ended March 31, 2000, Alcontrol generated operating profits of £2.2 million on turnover of £36.9 million and the net assets of Alcontrol as at March 31, 2000, excluding intra-group debt, were £39.2 million.
As at October 31, 2000, the unaudited net book value of the assets and liabilities sold, based on Alcontrol's management accounts and excluding intra-group debt, was £40.8 million.
In the first six months of the current financial year, Alcontrol performed significantly ahead of the same period last year and, although the integration of recent acquisitions has resulted in current trading being behind expectations, the business is delivering good profit growth.
