REC Record Plc

RNS No 9492q
REECE PLC
6th October 1998

 
SALE OF INDUSTRIAL FASTENER DIVISION TO LILLESHALL
 
On  5 October 1998 Reece sold its industrial fastener division,
Gladstone   Fasteners,   to  Lilleshall   plc.    The   initial
consideration,  payable  in cash, is an  amount  equal  to  the
estimated value of the assets acquired at #200,000, subject  to
final  adjustment  on  production of completion  accounts.   In
addition,  Reece  has retained the trade debtors  amounting  to
approximately #800,000, which are to be collected by Lilleshall
who have paid #574,000 on account of such collection.
 
The  proceeds of the sale will be used, in the first  instance,
to reduce Group indebtedness.
 
Gladstone Fasteners has been unprofitable for a number of years
culminating  in a loss of #273,000 for the year to 31  December
1997.   At  that  date, Gladstone Fasteners had net  assets  of
#1.76 million.
 
Mike  Norris,  Chief Executive of Reece, said "In my  judgement
this  is  a  positive move for our shareholders in a  difficult
economic environment.  I am sure that Lilleshall will  be  able
to develop the combined operations".
 
END

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