MGL
22/12/2015 15:52
ASSET
PRICE SENSITIVE
REL: 1552 HRS Mercer Group Limited
ASSET: MGL: Mercer Group divests Interiors division
Mercer Group enters unconditional agreement to sell Interiors Division and
acquires remaining 25% of Titan Slicer Limited
22 December 2015
Mercer Group Limited (NZX:MGL) has entered into an unconditional sale and
purchase agreement to sell its Interiors Division. The purchaser is an entity
majority owned by Ivan Ramsey, the current General Manager of MGL's Interiors
Division.
Terms of the sale
The sale comprises the assets comprising the "Mercer Interiors" division,
including fixed assets, the lease of the Christchurch manufacturing site and
relevant employees.
The purchase price is $2.15m (subject to customary adjustments), of which
$1.25m is payable on the completion date, with the balance payable in two
equal instalments on the first and second anniversary of the completion date.
The completion date is 2 February 2016.
Implications for Mercer Group
MGL CEO Richard Rookes said the sale was a further step in the restructuring
of the Mercer Group, having completed the sale of the Medical Division in
October 2015.
"We are now a long way through the restructuring process we announced in
August. With the divestment of the Interiors business, Mercer can now focus
on its core business and its new vision which is to design and supply
innovative food processing and packaging systems to the world. With the
relocation of the head office to our premises in Christchurch in the first
quarter of 2016, the restructuring will be largely complete and we can focus
on growing our core business".
Ivan Ramsey stated: "We look forward to growing the Interiors business with
exciting new products from Wilsonart and our New Zealand manufactured sink
range during 2016 and beyond".
Titan Slicer Limited
MGL has acquired 25% of Titan Slicer Limited (TSL) for a nominal $1 to now
own 100%. MGL remains confident in the Titan product offering and the export
growth potential of the product. The TSL operations are moving to MGL's
headquarters in Christchurch in the first quarter of 2016.
For further information contact:
Richard Rookes, CEO, 021 414 016
End CA:00275600 For:MGL Type:ASSET Time:2015-12-22 15:52:52
