Findel unveils proposed disposal of healthcare division NRS

Findel, the general merchandise supplier to the home, education and healthcare sectors, has entered into a conditional agreement to dispose of its Healthcare division (NRS) to LDC.

The gross consideration payable upon completion will be £24.0m in cash, comprising a payment of £22.6m to Findel and a payment of £1.4m into an escrow account to satisfy the estimated value of NRS's debt to the Findel Group Pension Fund.

The disposal is subject to shareholder approval and is expected to be completed by April 16th 2013, Findel reported.

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NRS is an operator of ICES Contracts for NHS trusts and local authorities. As of September 28th 2012, it had gross assets of £25.1m and in the financial year ended March 30th, it generated £76.8m of revenue and an operating profit of £2.1m.

Because of the size of the disposal relative to the group, it is deemed a "class one transaction" and is conditional upon the approval of Findel shareholders at a general meeting.

David Sugden, Chairman of Findel, said: "NRS is a good business with a leading position and a range of growth opportunities, the pursuit of which is better undertaken under new ownership.

"We believe that the proposed disposal of NRS is in the best interests of the group and its shareholders. The disposal will enable Findel to better focus on the turnaround plans for the remainder of the group, and will also help to strengthen the balance sheet by reducing group borrowings."

Shares in Findel were down 0.26% to 7.68p at 09:31 on Tuesday.

MF