Castings PLC
Purchase of assets
Castings PLC ("Castings" or "the
Company"), the leading iron casting and machining group primarily
focused on the European heavy truck market, is pleased to announce
it has acquired the fixed assets and stock of Russell Ductile
Castings Limited ("RDC") from its appointed
administrators.
RDC, a subsidiary of Chamberlin plc,
was an iron foundry producing parts for the capital goods and
energy market, some of which are common to the existing Castings
group. In the last audited accounts to 31 May 2023, RDC generated
revenue of £10.03m and an operating profit of £0.45m. It ceased
production following the appointment of administrators in May
2024.
Total consideration paid for the RDC
assets was a single cash payment of £0.4m paid to the
administrators on signature of the purchase agreement on 14 June
2024, from the Company's existing resources.
The plant offers the capability to
manufacture castings with weights ranging from 10kg to 7,000kg in
cast iron. The intention is to continue to
operate the plant from the existing site in Scunthorpe over which a
new 25-year lease (including appropriate break clauses) has been
agreed.
The directors believe that the
acquisition provides the opportunity to diversify the product
offering of the Castings group with an established customer base
that the directors are confident of being able to continue to
service.
Castings
PLC
+44 (0) 1543 374341
S J Mant, Director and Company
Secretary
Canaccord Genuity Limited (Joint
Broker)
+44 (0) 20 7523 8000
Adam James
George Grainger
Zeus
Capital Limited (Joint
Broker)
+44 (0) 20 3829 5000
Dominic King (Corporate
Broking)
David Foreman (Investment
Banking)
Notes for Editors
Castings PLC is a leading iron casting and machining group
based in the UK, supplying both the domestic and export markets. It
has gross foundry capacity of 70,000 tonnes p.a. and is highly
invested with the latest automation technologies. This enables high
mix production of low volume parts on a just in time basis to
provide a competitive edge. Castings has long-term relationships
with the major OEMs in its core European heavy truck market and
their platforms typically last over 10 years in production. In
addition to the commercial vehicle sector, Castings PLC also
supplies the wind power, agriculture, rail and material handling
markets. www.castings.plc.uk