01 May 1998
Powerscreen confirms Matbro-Deere deal
TROUBLED Northern Ireland engineers Powerscreen confirmed it had agreed the sale of its Matbro subsidiary to Deere & Co – US agricultural machinery makers – for £7 million.
Deere will not take on any of Matbros considerable liabilities. It will buy certain assets of Matbro, based in Tetbury, Gloucestershire and Matbro (NI). Matbro will retain its premises, fixed assets, debtors and creditors.
It is making 67 people redundant at Tetbury including managing director James Nicholson-Smith. It will retain 32 staff to continue making spares but the Northern Ireland factory will close.
Powerscreen said it had received a draft report by its auditors KPMG into the unexpected loses at Matbro, which had turned out to be £46.6m, and not £46.7m as previously thought.
Deere has a licensing deal by which it brands Matbros equipment with its own logo. The Daily Telegraph says it is likely to move manufacturing to one of its European factories in Germany, Spain or France.
- Financial Times 01/05/98 page 24
- The Times 01/05/98 page 34
- The Independent 01/05/98 page 26 (The Investment Column)
- The Daily Telegraph 01/05/98 page 36