Jarvis plc - General Sale - UK, Jarvis Completes Sale Prismo Road Markings

Date: 08 Dec 2006

Jarvis plc reports that it has completed the agreement for the sale of its Prismo Road Markings Limited subsidiary to Ennis Paint, Inc. based in Texas, USA which was first notified to the market on 3 November.

The agreed consideration for the sale is £9.5 million which is represented by a combination of cash and the assumption of certain liabilities by the purchaser. The final consideration will be subject to a working capital adjustment.

Prismo Road Markings Limited comprises the Prismo Contracting Services, Prismo Product Services and Prismo Traffic Products businesses in the UK.

Prismo Road Markings Limited develops, manufactures and applies road markings and specialised road surfaces including anti skid surfaces and sells other road traffic products. The sale includes the rights to the Prismo name and trademark and also includes an asset sale of the Prismo USA business.

Ennis Paint is the world's largest producer of pavement marking materials, and produces innovative, state-of-the-art technologies and solutions designed to promote safety for all modes of travel.

The gross assets of the business amounted to £21.3m on 31 March 2006. The business sold made an overall loss of £3.9m in the financial year to 31 March 2006.

Jarvis continues to be focussed on repositioning the Group around its strongest performing businesses. Jarvis will use the proceeds to reduce net debt.

Andrew Martin, the Managing Director of Jarvis' Roads division, will leave Jarvis following completion.

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