REG - Castings PLC - Acquisition of Assets

CastingsAnnouncement

17/06/2024 07:00

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RNS Number : 5588S  Castings PLC  17 June 2024

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
(http://www.castings.plc.uk)

 

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