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Siteserv to shut after £40m sale of scaffolding division Ι Construction Enquirer
Siteserv is selling its infrastructure business including scaffolding arm Deborah Services for £40m to pay off its debts.
The completed deal will then see Sitserv wound down and any proceeds left paid to shareholders.
Siteserv said only £4m would be left from the sale for shareholders after its debts were settled.
The company confirmed to the Stock Exchange today that its current debt levels were “unsustainable”.
The companies being sold are Deborah, Sierra Communications (which now incorporates Holgate’s business), Easy Access, Donohoe Scaffolding, Rent-a-Fence, Roankabin Holdings and Eventserv.
The operations are being bought by an acquisition vehicle called Millington set-up by entrepreneur Denis O’Brien for the deal.
The companies had a turnover of £140m for the year to April 30 2011 and made an operating profit of £7m.
More than 2,000 people are employed by Siteserv across the UK and Ireland.
Siteserv said: “Following Completion, the Group will not have any revenue generating operating businesses.
“The Board has determined that it is in the best interests of Shareholders as a whole to return the net proceeds of the Proposed Disposal to Shareholders as efficiently and expediently as possible and to wind up the Company to facilitate the distributions to the Shareholders in a tax efficient manner.”
Siteserv is selling its infrastructure business including scaffolding arm Deborah Services for £40m to pay off its debts.
The completed deal will then see Sitserv wound down and any proceeds left paid to shareholders.
Siteserv said only £4m would be left from the sale for shareholders after its debts were settled.
The company confirmed to the Stock Exchange today that its current debt levels were “unsustainable”.
The companies being sold are Deborah, Sierra Communications (which now incorporates Holgate’s business), Easy Access, Donohoe Scaffolding, Rent-a-Fence, Roankabin Holdings and Eventserv.
The operations are being bought by an acquisition vehicle called Millington set-up by entrepreneur Denis O’Brien for the deal.
The companies had a turnover of £140m for the year to April 30 2011 and made an operating profit of £7m.
More than 2,000 people are employed by Siteserv across the UK and Ireland.
Siteserv said: “Following Completion, the Group will not have any revenue generating operating businesses.
“The Board has determined that it is in the best interests of Shareholders as a whole to return the net proceeds of the Proposed Disposal to Shareholders as efficiently and expediently as possible and to wind up the Company to facilitate the distributions to the Shareholders in a tax efficient manner.”
