Carr's Group to sell engineering division to Cadre for £75m

(Sharecast News) - Carr's Group said on Thursday that it has agreed to sell its engineering division to US-based Cadre for £75m and plans to return up to £70m of the proceeds to shareholders. The company said the deal will simplify its group structure and enable it to concentrate future investments and allocate resources more effectively to the agriculture division.

Chirton Engineering, a wholly-owned subsidiary located in North Tyneside which specialises in the precision machining of highly complex components and assemblies, is not included in the sale of the engineering division. Carr's said a separate sale process is underway for Chirton and continues to progress "positively".

Chief executive David White said: "I am delighted that we have been able to execute this critical step in our strategy, one which leaves us able to focus on the global opportunities for our agriculture business.

"Our specialist product portfolio provides a strong base for profitable growth in both existing and new markets. The hard work of all colleagues across the engineering division has been key to the success of the group in recent years and I wish them the very best for the future."

At 1005 GMT, the shares were up 12% at 129.01p.