Yule Catto sells pharma division to Vivimed
Yule Catto, the Essex headquartered polymer business, has sold its pharmaceuticals division, Uquifa, to the Indian firm Vivimed Labs.
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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