Fife firm Havelock Europa to sell printing unit
Shop and office-fitter Havelock Europa has announced plans to sell off its Showcard Print business for £15.25m.
The Fife-based firm said it would sell its entire shareholding to Ingleby, a new company which is part-controlled by some of Showcard's senior management.
Havelock intends to use the proceeds of the sale to reduce its net debts, which stood at £17.2m last June.
The transaction will be put to a general meeting of Havelock shareholders on 23 April.
Under the proposed deal, Havelock will lease its Fontana House property to Showcard for a 10-year period, providing an annual rental income of £150,000 from January next year.
Subject to shareholder approval, the transaction is expected to completed by 30 April.
Showcard Print operates in the point of sale print and display market. In the year to December 2010, it made a pre-tax profit of £2.9m on sales of £21m.
Last October, Dalgety Bay-based Havelock announced it had won a three-year contract to fit out at least 30 new schools in the south of England.
Havelock said the deal with Balfour Beatty Construction, worth about £20m, was part of its strategy of investing in the education market.