Powerscreen International has sold its American subsidiary, Ludlow-Saylor, for $9.05 million (€7.9 million) to another American company, Svedala Industries.
Powerscreen said the sale was the final part of a disposal programme which has generated £46 million since last May. The funds generated are expected to be used to reduce the company's large debt.
Located in Warrenton, Missouri, Ludlow Saylor manufactured a range of screen meshes. For the financial year to March 21st, 1998, it had a turnover of $11.6 million and pre-tax profits of $1.57 million.
Powerscreen acquired Ludlow Saylor in 1994 and the net proceeds of the sale after tax are expected to be $7.8 million. This means a profit on disposal of $1.4 million.
The current balance sheet for Ludlow Saylor has to be completed before the sale is concluded. In the meantime, £0.5 million is being held in a bank account to meet any final claims which might arise.
Commenting on the sale, Powerscreen's chairman, Mr John Craig, said the company would now concentrate on its core businesses. "Our debts have reduced substantially and we have a new two year bank facility in place," he added.
A company spokesman said the sale did not represent an exit from the United States where Powerscreen still has business. However, he added that there would be no acquisitions in the US in the short term, with more focus on debt reduction.
