Elementis sells Linatex division

London -- Elementis plc has announced the sale of Linatex, its Yately, UK-based specialty rubber business, to private equity funds managed by Navis Capital Partners for approximately US$30.8 million (£17.6 million) in cash, net of all debts. Navis is an Asian-based investment company.

Elementis said Linatex is a leading international manufacturer of wet abrasion resistant rubber products and process equipment. In the year ended 31 December 2004, Linatex's operating profit was £0.2 million on sales of £45.9 million with net assets of £17.1 million, excluding cash and debt. After taking account of transaction costs and net asset levels at the time of the sale, Elementis expects to record a one time book loss on sale of around £7.0 million.

Net proceeds from the sale will be used to make an additional contribution to the UK pension scheme of £7.0 million, with the balance going to reduce net borrowings. Completion is expected to take place before the end of 2005.

Edward Bramson, Executive Chairman of Elementis, commented: "This completes the strategic review of Linatex which was announced early in 2005. The review concluded that the business was non-core and that a sale represented the best value option going forward."