Lonrho sells Firsteel to management
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.LONRHO, the international trading group headed by Roland 'Tiny' Rowland, has continued its programme of 'good housekeeping' with the sale of Firsteel Group, the narrow strip steel processor, to the management.
Tim Adams, chairman of Firsteel, which employs just over 1,000, said: 'Lonrho wished to divest themselves of the business and we wished to purchase.'
No price has been disclosed but the net tangible assets sold were around pounds 21m. The sale price is believed to be considerably less than the pounds 25m required to finance the transaction. That figure includes working capital requirements.
The financing has been arranged by Phildrew Ventures and Midland Montagu Ventures. This includes senior debt facilities of pounds 11.5m provided by Midland Bank.
The transaction represents the first buyout by Phildrew's new pounds 108m Phildrew Ventures Third Fund, which has a majority stake in Firsteel.
In 1991 Firsteel had sales of pounds 80m and was breaking even. 'Capital investment throughout the recession and reductions in the cost base have put the company in good shape to take advantage of the medium-term upturn expected in our key markets,' Mr Adams said.
Lonrho has made a series of disposals this year as it tries to reduce its debt mountain.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments