Camellia agrees to sell interest in ACS&T

19th Dec 2022 14:34

(Sharecast News) - Camellia has agreed to the sale of its interest in ACS&T to HSH Coldstores, it announced on Monday, for £16.5m in cash payable at completion.

The AIM-traded firm said it was also receiving a pre-completion cash dividend of £3.8m.

It described HSH as "one of the UK's leading providers" of temperature-controlled storage and distribution solutions, and a subsidiary of Europe's third largest cold storage network, Constellation Cold Logistics.

The company said the transaction, which remained subject to customary warranties and indemnities, was expected to complete on 10 January.

There were no conditions to completion save for the lapse of time.

"The final consideration due to the company remains subject to agreement on the completion accounts in accordance with the share purchase agreement, including the actual working capital at completion against an agreed estimate and adjustments for cash or debt items," the board said in its statement.

It expected those adjustments to be agreed in the second quarter of next year.

"The proceeds from the sale will be applied to support the group's strategy of focussing its investment activity on its core agriculture operations and for general working capital purposes."

ACS&T, which is a BRCGS-accredited food temperature-controlled storage and logistics specialist, had revenue of £13m and recorded a profit before tax of £0.6m for the six months ended 30 June.

On that date, the gross assets attributable to the business were £33.6m, and net assets totalled £14.8m.

Camellia said it expected to record a gain on the sale of ACS&T, net of expenses, in the current financial year of about £3.7m.

Additionally, after a review of the space requirement appropriate to the needs of its head office, Camellia said it was intending to relocate its office during 2023 to a recently-refurbished investment property it owns in Wrotham, Kent.

"The group's head office is currently located at Linton Park for which planning approval for a change of use to residential has been submitted to make the property more attractive on the rental or sales market."

At 1205 GMT, shares in Camellia were up 4.35% at 4,695.6p.

Reporting by Josh White for Sharecast.com.