Delta finally kicks out the cables

Engineering group Delta called time on its divestment programme last week after selling its remaining cables businesses to Draka Holding in a £22.4m deal. The sale comes more than a year after it first reduced its exposure to its low-value commodity cable activities through an asset exchange and disposal agreement with BICC. Last week’s disposal […]

Engineering group Delta called time on its divestment programme last week after selling its remaining cables businesses to Draka Holding in a £22.4m deal.

The sale comes more than a year after it first reduced its exposure to its low-value commodity cable activities through an asset exchange and disposal agreement with BICC.

Last week’s disposal covers three factories in Llanelli, Derby and Leeds which make commodity building wires and special cables. Also included in the sale are several distribution branches in the UK and part of a distribution operation in Hong Kong.

The combined operations employ 956 people.

Chief executive Jon Scott-Maxwell said Delta would focus on expanding its four main businesses of electrical, electrolytic manganese, galvanizing and plumbing.

The sale proceeds will be used to cut borrowings and boost core business.

Gearing was 69% at the half-year, but would be just 45% if these funds and the process of the materials business sale announced in December were included.