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St Ives offloads slew of marketing businesses
International marketing services group St Ives announced on Monday that it has completed the disposal of a "significant part" of its marketing activation segment, consisting of SP Group, Service Graphics, Tactical Solutions UK and Flare, to SelmerBridge.
The London-listed firm said the sale formed part of the board's continuing strategy to refocus the group's activities.
St Ives' marketing activation segment would now consist solely of St Ives Management Services - its print management business - which had been retained within the group.
The total consideration for the disposal was based on an enterprise value of £6m, subject to a cash and working capital adjustment, and was paid in full in cash at the time of completion.
According to the board, the division provided point of sale, large format printing services, field sales and marketing services to a largely UK customer base.
As at 28 July last year, the Division had gross assets of £40.8m and in the financial year then ended generated £106.3m of revenue, and a loss before tax of £4.4m.
Its board said the disposal was consistent with the group's strategy of refocusing on its strategic marketing segment, whilst moving away from the commoditised sectors of the print market.
The division had continued to experience "challenging and competitive" trading conditions, with downward price pressure resulting in reduced levels of profitability over recent years.
St Ives said the net proceeds of the disposal would be used to reduce the group's debt.
"Having taken considerable action over the past year to stabilise the performance of the division, we are pleased to complete the sale as part of a planned disposal process," said chief executive Matt Armitage.
"The sale is in line with the board's stated strategy of focusing on the group's core businesses, in particular those within its higher growth, higher margin strategic marketing segment."