Yule Catto, the Essex headquartered polymer business, has sold its pharmaceuticals division, Uquifa, to the Indian firm Vivimed Labs.
Yule will receive £35m for Urquifa, the company which makes active pharmaceutical ingredients for the wider pharma industry. It operates three manufacturing sites, two in Spain and one in Mexico, employing a total of 390 people.
Vivimed will pay £28.6m in cash, with a further £6.4m to be paid in three years time. The proceeds will be used to pay down Yule's debt.
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Commenting on the disposal, Yule Catto's chief executive Adrian Whitfield said:
"I am delighted to be able to announce this disposal. Following the PolymerLatex acquisition we completed earlier this year, this marks the final step in a long process of transforming Yule Catto into a substantial highly focussed Specialty Polymer business."
Today's announcement indicated the deal would be slightly dilutive to Yule's earnings, but its shares were down 0.18% in early trading. Over the year to date Yule Catto has fallen 16%.
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