Chamberlin sells Exidor to ASSA ABLOY in £10m deal

Chamberlin has completed the sale of Exidor to ASSA ABLOY for a total enterprise value of £10m, it announced on Thursday, with the consideration to be paid in cash.

The AIM-traded firm said the proceeds would be used to reduce group indebtedness, to provide additional working capital and to reduce certain of its existing pension liabilities.

It said the cash consideration represented approximately 180% of its market capitalisation, based on its closing mid-market share price of 70p per ordinary share as at 18 December.

Exidor employed around 70 staff from its premises in Cannock, all of whom would be retained under the ownership of ASSA ABLOY.

Turnover in the year ended 31 March was £7.52m, and operating profit was about £0.65m, with total net assets as at 31 March of approximately £2.01m.

“This transaction will enable Chamberlin to restructure its balance sheet and will provide additional working capital,” said chairman Keith Butler-Wheelhouse.

“We can look forward to the further development of our core operations with greater certainty and with considerable optimism.

“We believe that ASSA ABLOY, who are well positioned to support the ongoing growth and development of the business, represents the ideal owner for Exidor.”