SEA - 1st October 2007
Carillion sells cleaning company Pall Mall
Support services and construction company, Carillion plc, has sold Pall Mall Holdings and Sovereign Soft Services Limited to Resource (NI) Limited, a wholly owned subsidiary of the Resource Services Group.
The consideration for the sale is £22 million, received in cash. The sale is expected to generate a loss on disposal of approximately £7 million, net of goodwill and disposal costs, subject to a completion accounts process.
Commenting, Carillion Chief Executive, John McDonough, said: "Pall Mall and Sovereign Soft Services, which we acquired with Mowlem in 2006, are non-core businesses for Carillion and their disposal is in line with our strategy for growing the Group's support services business through focusing on integrated service solutions for long-term customers, rather than on the single-commodity services of cleaning and security provided by these two companies".
Carillion will use the sale proceeds to reduce its net borrowings.
For further information contact
John Denning, Director Group Corporate Affairs 01902 316426
Notes to Editors
Carillion is one of the UK's leading support services, construction and Public Private Partnership project companies.
The Group has annual revenue of around £4bn and employs over 40,000 people.
The Group operates across the UK, in the Middle East and in Canada and the Caribbean.
In the UK, the Group has eight principal market sectors - Defence, Education, Health, Building, Facilities Management and Services, Roads, Rail and Civil Engineering.
In the Middle East, the Group's two principal market sectors are Construction and Facilities Management.
In Canada and the Caribbean the Group's main sectors are Health, Roads Maintenance and Construction.
The Group is a leader in Public Private Partnership projects, particularly in the Defence, Education and Health sectors in the UK and in the Health sector in Canada.
This and other news releases relating to the Group can be found at www.carillionplc.com
