TDG Disposes of Data Services
TDG plc today announces that it has sold its Data Services business to Iron
Mountain UK Limited (“IM”) for a total cash consideration of #6.5 million on a
debt-free basis, of which #5.85 million is payable on completion, with the
balance payable no later than thirteen months after completion. The sale
proceeds will serve to reduce Group debt.
Data Services provides document and magnetic media storage and management
services from eight locations across the UK. TDG will provide use of these
facilities to IM for up to 17 months, during which period IM will transfer the
activity to its existing locations.
TDG plc announced on 18 July 2002 the agreement to dispose of the main site in
London to a Luxembourg subsidiary of the Prologis Trust group (“Prologis”) for a
cash consideration of #7.2 million, of which #3.4 million will be received at
the end of 2002, with the balance to be received when TDG gives Prologis vacant
possession of the site, which can be no later than June 2004. In addition, TDG
is entitled to an additional payment if residential planning permission is
obtained by Prologis for part or all of their total site including additional
adjoining land, within ten years of completion of TDG’s disposal.
In 2001, Data Services had turnover of #5.8 million and operating profit of #0.5
million, and in the first half of 2002 reported turnover of #3.1 million and
operating profit of #0.4 million. As at 30 June 2002, the Data Services
business, including capitalised goodwill of #3.9 million, but excluding the main
site in London, represented #5.9 million of the Group’s net assets.
In combination, the Data Services business and the main site in London represent
#10.3 million of the Group’s net assets, with proceeds from the transactions
totalling #13.7 million. The exceptional profit will be accounted for in the
second half.
David Garman, Chief Executive of TDG, commented:
“The base proceeds of #13.7m represent an excellent price for the Data Services
business and main property asset, and we believe our customers will be well
served by Iron Mountain. The disposal represents a further step in focusing
the Group on its core Contract Logistics operations.”
