Glynwed sells out of metals sector

Glynwed quit the metal processing market last week with the £21.2m sale of its last metal-bashing businesses to Niagara Corporation of the US. The companies sold are mostly based in the Midlands, around Birmingham and near Rugby. They include the hot-rolling, steel-bar and bright-drawn steel processing businesses. The disposal follows the £145m sale of metal […]

Glynwed quit the metal processing market last week with the £21.2m sale of its last metal-bashing businesses to Niagara Corporation of the US.

The companies sold are mostly based in the Midlands, around Birmingham and near Rugby. They include the hot-rolling, steel-bar and bright-drawn steel processing businesses.

The disposal follows the £145m sale of metal processing operations to Tyco in February.

The price achieved represents more than six times the combined operating profit of the businesses last year – £3.4m.

Glynwed will focus on food service equipment and pipe fittings. It said the proceeds from the sale will be ploughed back into the group to fund acquisitions in its remaining business areas. It has an estimated cash pile of £300m for future deals.

The disposal came as Glynwed’s annual report revealed its three top executives shared bonuses of more than £130,000 last year. Chief executive Tony Wilson earned a £60,000 bonus – 21% of his basic £297,500 salary.

Finance director William McGrath and administration director John Blakeley received £40,000 and £30,000, respectively.