Robinson wraps up £2.6m sale
Packaging company Robinson has sold its loss-making Chesterfield subsidiary to Sonoco. Robinson Paperboard Packaging was sold for £2.6m.
The subsidiary, which designs and manufactures spirally wound paperboard containers, has been sold to Hull-based Sonoco, which is a long-standing customer of Robinson.
The paperboard packaging division represented 24 per cent of group revenues in 2010 but has not contributed to profits in the past five years since it lost a long standing major contract.
Sonoco, a packaging products provider, said it required the surplus capacity in the Chesterfield plant to meet its own customer demands.
The consideration is £2.6m in cash subject to adjustment in respect of working capital levels following production of completion accounts.
Robinson said it would use the profits from the sale to reduce current bank debt.
Sonoco will take a 15 year lease over the business's site and factory buildings at Goyt Side Road. The company also has an option to purchase the property within the next two years at a fixed price.
Adam Formela, chief executive officer of Sonoco, said: "This transaction represents a unique opportunity to enhance future prospects for the business and employees of Robinson Paperboard Packaging whilst allowing the company to focus on developing its plastics businesses in UK and Poland."
