Molins sells Italian firm
Specialist engineering group Molins in Milton Keynes has saved itself a cool £4m by finding a buyer for a division it would otherwise have closed down.
The company announced in May its intention to either sell or close its Italian subsidiary, Sasib, and that discussions with potential acquirers were taking place.
The closure of Sasib has been avoided following the transferral of its share capital, for a nominal consideration, to Paritel, an Italian engineering business.
The total cash cost of closure was previously estimated at £8m, of which £6m would have been incurred in 2006. The result of selling Sasib on the terms agreed, rather than closure, is that the cash cost to Molins is estimated to be £4m lower than the estimated costs of closure.
Sasib designs, manufactures and sells specialist machinery, predominantly packing machines for the tobacco industry.