Vesuvius, the FTSE 250 metal flow engineering firm that was formed from the demerger of Cookson last year, is to offload its non-core Precious Metals Processing Division (PMP) and return proceeds of the disposal to shareholders.
PMP will be sold to Heimerle + Meule (H+M), a German supplier in the precious metals industry, for a cash consideration of €56.8m, though this will be subject to closing balance sheet adjustments. H+M is a subsidiary of German conglomerate L Possehl & Co.
Vesuvius said that the majority of these funds will be returned to shareholders through a share repurchase, while the rest will be used to reduce existing borrowings.
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"Following the recent creation of Vesuvius plc through the demerger of Cookson, this is a further important strategic step for our company. It represents the sale of a non-core asset and the final exit from precious metals processing, leaving Vesuvius principally focused on our core competence of molten metal engineering, serving the global steel and foundry industries," said Chief Executive Franois Wanecq.
"As a result of this disposal, we intend to return the majority of the net proceeds to shareholders through an on market repurchase of shares, demonstrating our desire to exercise strong capital discipline and generate superior returns. Our strong balance sheet allows us to do this and still remain able to fund attractive growth opportunities."
Shares in Vesuvius were up 0.16% at 365.2p by 08:10 on Wednesday.
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