IWP, the personal care products manufacturer and distributor, has conditionally agreed to sell its plastic components company, the Skiffy group, for €28.1 million.
The business is being purchased by Bunzl plc, an international distribution and outsourcing group, but the sale is subject to the approval of IWP shareholders.
The sale must also be notified to the German competition authorities.
The company had signalled the disposal when it issued interim results as part of a refocusing of the business onto core personal care products.
"We are satisfied with the consideration achieved, which will be used principally to reduce debt," chief executive, Mr Jim Murphy, said yesterday.
The Skiffy group operates in 76 countries across all continents and its principal markets are France, Netherlands, Germany and the UK. It offers over 6,400 plastic and related metal components and its products include washers, caps and plugs, which are used for applications in the general manufacturing sector.
In the year to the end of March 2003, the group earned an operating profit of €3.5 million on turnover of €12 million.
It has net assets of €10.9 million.
IWP has been restructuring its business in the past few years and has disposed of several non-core businesses.
Mr Murphy has told shareholders that the company would focus its managerial and financial resources on expanding its personal care business.
He said the sale of Skiffy was in the group's best interest. Meanwhile, Mr Murphy has disclosed that he acquired 100,000 ordinary shares at 32 cents each on February 6th last.
This brings his total beneficial holding after the transaction to 0.125 per cent of the group.
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