Scapa Group has announced that it has sold its UK-based sealants operation, for £4.9 million ($9.64 million) cash, in a deal expected to be complete in February. The group did not reveal the purchaser.
Scapa's sealants operation, making elastomer-based materials, had sales of £7 million in fiscal 205/6 with an operating profit of L0.3 million.
The Lymington, Hampshire-based operation employs 71 people, and had net assets of £2 million.
"The sale of our sealants business represents another successful step in the implementation of Scapa's recovery strategy with this deal being the third disposal from our peripheral operations," said Scapa chief executive, Calvin O'Connor, in a 16 Jan statement.
In mid 2006, Scapa UK Ltd sold its Megolon compounding division to Alphagary Ltd, a subsidiary of Rockwood Holdings Inc, for £16.75 million ($31.26 million).
Scapa said the company would use the proceeds from selling the non-core operation to pay off debt.
Scapa Tapes makes an extensive range of adhesives tapes, many of which use elastomeric adhesives, for the automotive, industrial and medical sectors. Polyurethanes are used in Its medical tapes business, for the film or foam tape substrate in some products. "