In a not altogether surprising move, the UK-based building products group, Caradon PLC (24 Queens Road, Weybridge, GB-Surrey KT13 9UX), has announced plans to sell most of its European engineering and distribution businesses for GBP 190m. The buyer is the venture capital group CINVen, which earlier this year also gave backing to a management buyout of Addis Housewares (see Plasteurope.com 7 15, 1996).

The companies involved include some of the UK's leading injection moulding businesses. Caradon Rolinx (Ledson Road, Wythenshaw, GB-Manchester M23 9WP), primarily supplies to the automotive industry, although its customers also include domestic appliance and electronics OEMs. Caradon Elliot (Bescot Crescent, GB-Walsall WS1 4NG) is a significant supplier to the telectronics sector. In 1992 it opened a plant in Gwent, South Wales specifically to serve the growing Japanese telectronic OEMs setting up in the region. Caradon L&P (Westwood Industrial Estate, Ramsgate Road, GB-Margate CT9 4JT) manufactures for the automotive, domestic appliance and power tool industries. These companies are thought to use in total over 10,000 t of polymer a year operating around 120 machines.

The combined 1995 turnover of the 15 businesses included in the deal was GBP 264m with profits of GBP 21m. Commenting on its decision to sell, Caradon Group Chief Executive, Peter Jansen, said: "These are good businesses with good prospects, but are not a mainstream activity for us. Disposing of them would bring added focus and opportunities to our building products activities in Europe, and is in keeping with our stated strategy."

Last year the Caradon group recorded a 43% fall in profits in the face of weak demand for its main building products businesses and has been carrying out a cost-cutting programme to reduce overheads (see Plasteurope.com 11, 1996).