Mercer Group divests interiors division

Mercer Group Limited (NZX:MGL.NZ - News) has entered into an unconditional sale and purchase agreement to sell its Interiors Division. The purchaser is an entity majority owned by Ivan Ramsey, the current General Manager of MGL’s Interiors Division.

Terms of the sale

The sale comprises the assets comprising the "Mercer Interiors" division, including fixed assets, the lease of the Christchurch manufacturing site and relevant employees.

The purchase price is $2.15m (subject to customary adjustments), of which $1.25m is payable on the completion date, with the balance payable in two equal instalments on the first and second anniversary of the completion date. The completion date is 2 February 2016.

Implications for Mercer Group

MGL CEO Richard Rookes said the sale was a further step in the restructuring of the Mercer Group, having completed the sale of the Medical Division in October 2015.

"We are now a long way through the restructuring process we announced in August. With the divestment of the Interiors business, Mercer can now focus on its core business and its new vision which is to design and supply innovative food processing and packaging systems to the world. With the relocation of the head office to our premises in Christchurch in the first quarter of 2016, the restructuring will be largely complete and we can focus on growing our core business".

Ivan Ramsey stated: "We look forward to growing the Interiors business with exciting new products from Wilsonart and our New Zealand manufactured sink range during 2016 and beyond".

Titan Slicer Limited

MGL has acquired 25% of Titan Slicer Limited (TSL) for a nominal $1 to now own 100%. MGL remains confident in the Titan product offering and the export growth potential of the product. The TSL operations are moving to MGL’s headquarters in Christchurch in the first quarter of 2016.