UK-based Vitec Plc, which owns a dozen companies in the broadcast industry, announced that it has sold its collection of loss-making staging business via two separate transactions.
Vitec said that the staging business, which supply standard aluminum trusses and custom stage sets, were a non-core assets.
In 2011 these businesses incurred an operating loss before significant items of £700,000 on revenue of £17.7m. At the end of 2011 the gross assets of the staging businesses was £9.1m.
Vitec appears to have received no money for these businesses, and in fact said that as part of the deal it will record an estimated net cash outflow of £2.1m after transaction costs.
Under the terms of the two deals:
- MILOS S.R.O., based in the Czech Republic, has purchased the majority of the staging business that consists of: Tomcat USA Inc, Tomcat Global Corp., Tomcat de Mexico SA de CV, Staging Systems Europe SpA and Staging SK S.R.O. These companies are based in the US, Mexico, Italy, and Slovakia.
- Prolyte Products UK Limited purchased the remaining Staging business, Brilliant Stages Limited, which is based in the UK.
“We are pleased to have secured the sale of our Staging business to two leading staging and truss manufacturers,” said Vitec CEO Stephen Bird. “The disposal will enable us to focus on our core markets and our strategic objective of providing products and services that support the capture of exceptional images.”
Press Release: The Vitec Group plc – Sale of Staging Businesses
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