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Management buys £12m subsidiary

By Mark Dunne on June 11 2008

A Yorkshire-based print and marketing communications services company has decided to sell its operations in Bath for an eight-figure sum. Communisis is to dispose of the business to its management for more than £12 million.

On completion some £8 million will be paid in cash, with the balance due by July 2012.

The target business comprises Bath Business Forms, a manufacturer of business forms stationery, and Economailer, a specialised payroll products company. As part of the buy-out agreement, the Bath operation will continue to supply the Leeds-based group.

Communisis chief executive Steve Vaughan said the group’s Bath business does not fit with its strategy of focusing on its marketing communications interests. He adds: 'We are therefore exiting this non-core part of our business for a cash consideration and in a non-dilutive way, leaving us free to concentrate on the higher-value, growing parts of our business and accelerate their growth.'

In the year to January 2008, the target business made a pre-tax profit of £1.55 million.

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