Disposal of Bidim for £16.6 million
30 April 2008
Fiberweb plc ("Fiberweb" or "the Company") is pleased to announce that it has agreed the sale of its wholly-owned Brazilian subsidiary, Fiberweb Bidim Industria e Comercio de Näo-Tecidos Ltda ("Bidim"), to MEXICHEM S.A.B de C.V., a subsidiary of Mexichem, for a cash consideration of Brazilian Real 55.5 million (£16.6 million) ("the Disposal"), subject to a post completion working capital adjustment. The proceeds, net of an estimated Brazilian Real 5.0 million (£1.5 million) of associated tax and transaction costs, will be used to reduce Group debt. The expected gain on disposal is £2.5 million. The sale is conditional, inter alia, upon the approval of Fiberweb shareholders which is to be sought at a General Meeting. A circular containing further details of the Disposal and convening the General Meeting will be sent to shareholders in due course.
Bidim manufactures standard polyester nonwoven fabrics predominantly for use in geotextile, roofing and footwear markets from its manufacturing site near STM?o Paulo, Brazil. The Disposal is consistent with the Board's stated strategy of reviewing Fiberweb's portfolio of businesses to ensure that shareholder value is maximised and Group indebtedness is reduced.
Bidim's gross assets as at 31 December 2007 were Brazilian Real 55.5 million (£16.6 million) and pre-tax profit for the year ended 31 December 2007 was Brazilian Real 4.3 million (£1.3 million). The transaction is expected to be earnings neutral for Fiberweb in 2008. Fiberweb was advised in Brazil by Stratus.
Commenting on the Disposal Daniel Dayan, Fiberweb's CEO, said today:
"As part of Fiberweb's ongoing programme of business simplification and focus on strengthening its core hygiene and speciality industrial businesses, we have taken the decision to dispose of Bidim. Under Fiberweb's ownership Bidim has been developed into an excellent business that has grown sales and profits in recent years and are pleased to be able to transfer ownership to a company with a significant footprint in adjacent markets which will continue to build on the achievements to date. The proceeds from the disposal will be used to reduce the Group's existing debt."
Fiberweb will update the market on current trading at its Annual General Meeting and in its AGM and Interim Management Statement on Friday 2nd May.
-Ends-
Enquiries:
Fiberweb plc 020 8439 8594
Daniel Dayan, Chief Executive
Dan Abrams, Chief Financial Officer
Hoare Govett Limited 020 7678 8000
Neil Collingridge
John Fishley
Justin Jones
John Garrad-Cole
Weber Shandwick Financial 020 7067 0700
Ian Bailey
Nick Dibden
James White
This announcement has been issued by, and is the sole responsibility of, Fiberweb plc
Hoare Govett Limited, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting as financial adviser, sponsor and broker to the Company and no one else in connection with the Disposal, and will not be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to the Disposal, or any other matters referred to in this announcement.
This announcement contains forward-looking statements, which are based on the Board's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a number of variables which could cause actual results or trends to differ materially. Each forward-looking statement speaks only as of the date of the particular statement. Except as required by the Listing Rules, the London Stock Exchange or otherwise by law, the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
No statement in this announcement is intended to be a profit forecast or to imply that the earnings of Fiberweb for the current year or future years will necessarily match or exceed the historical or published earnings of Fiberweb.
Assumed exchange rate: BRL/£ = 3.343