20 Jun 2007 Disposal of Metallics Business by Wolstenholme
Rutland Partners, the UK private equity partnership, announces that one of its portfolio companies, Wolstenholme Group Limited (“Wolstenholme”), has today announced the sale of the business, certain assets and goodwill of its metallic effect pigment and metallic printing ink business (“the Metallics Business) to Eckart GmbH and Co KG (“Eckart”) for a consideration of £22.0 million of which £20.0 million will be received on completion. The sale is conditional on clearance by the competition authorities in Germany and the UK.
Wolstenholme is a leading manufacturer of metallic effect pigment and metallic printing inks and was formed as part of the demerger that followed the public to private of Wolstenholme Rink plc in July 2000.
The products included within the Metallics Business sale are all the bronze and aluminum flake and all the metallic inks currently manufactured and distributed by Wolstenholme. The sale proceeds of £22 million represent £16 million in respect of the business and £6 million in respect of inventory and production equipment. Wolstenholme will retain its black dispersions business in the US and Ronald Britton in the UK. In addition, Wolstenholme has entered into a tolling agreement to manufacture certain products on behalf of Eckart which would become effective on completion and last for a maximum of 18 months.
The proceeds of the sale will be used to buy out in full the liability within the Wolstenholme UK pension fund, which is currently in deficit, and enable a partial redemption of Loan Notes and accrued interest. Rutland will continue to work with the Wolstenholme management on the remaining business and look to a realisation of the balance of its investment in Wolstenholme.
The transaction was co-ordinated on behalf of Rutland by Paul Cartwright.