Marine services provider James Fisher announced the sale of three businesses in two separate transactions on Monday.
The London-listed firm said Mimic and the UK operations of Strainstall had been sold to the BES Group for initial cash of £13.6m.
In addition, up to £3.9m of further cash could be payable in the first quarter of next year, based on performance in the last quarter of 2022.
Both Mimic and Strainstall each held “leading positions” in their respective markets, the board said, but it had concluded that they would be better able to continue developing outside of James Fisher, in line with its strategy to rationalise and focus its portfolio.
The proceeds would be applied to reducing the group’s net borrowings.
James Fisher said the results of the combined businesses were reported within the marine support division.
In the year ended 31 December 2021, they generated combined revenue of £8.7m and profit before tax of £0.8m.
As at 30 June, the gross assets of the businesses were about £7.4m, with James Fisher confirming that existing management and staff would transition with the businesses to the new owners.
In addition, the company said it had completed the sale of Prolec to Kinshofer, part of Lifco.
In the year ended 31 December 2021, Prolec contributed revenues of £4m to the marine support division.
Existing management and staff would transition with the businesses to the new owners.
The board said the disposal further demonstrated its commitment to a strategy of rationalising the group.
“The sale of Prolec, Mimic and the UK operations of Strainstall represent a clear demonstration of our strategy to rationalise and focus the portfolio, as well as strengthening our financial position,” said chief executive officer Jean Vernet.
“We believe the transactions represent good value for James Fisher’s shareholders and in BES and Lifco, we have found buyers of quality.”
At 0800 GMT, shares in James Fisher and Sons were up 1.32% at 345.5p.
Reporting by Josh White for Sharecast.com.
