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Dyson continues restructuring with MBO
Who?
Dyson Group, the recession-hit materials technology company
Did what?
Sold its precision ceramics business to its management team for £100,000 as part of its restructuring.
What does this mean?
The Sheffield-based group suspended its shares in July 2009 while it negotiated with banks. It is now restructuring the business, cutting 38 per cent of jobs, selling £2m worth of property assets and selling its kiln furniture business in a management buyout. The subsidiary Dyson Industries has now exchanged contracts with JEMMTEC, a company set up by the existing and previous management of the precision ceramics business, which manufactures products used in the glass and metals industry from its base in Dewsbury. The business will trade as Magma Ceramics. The business had gross assets of £1.8m in its unaudited accounts for the nine months to 31 December 2009 and made a profit of £44,000.
Who advised?
KBC Peel Hunt
Insider comment:
Dyson reported “significant progress” in negotiations with its banks at the end of January following its restructuring efforts. The business said its principal operating business Saffil had recorded an 18 per cent rise in sales. The business has also sold off property assets and restructured its management team. This management buyout follows that of its kiln furniture business for £1m on Christmas Eve.
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