Lamprell plc, a leading provider of fabrication, engineering and contracting services to the onshore and offshore energy industry, dsclosed Tuesday that it has entered into an agreement for the sale of one of its smaller non-core service businesses, Litwin PEL LLC (Litwin), to India's Nauvata group of companies for an enterprise value of $3.0 million. Litwin is an engineering and minor EPC contracting company that serves the oil and gas, chemical and petrochemical sectors in Abu Dhabi, United Arab Emirates (UAE).
As previously announced, the Board has been reviewing the ownership of certain service businesses which do not form part of the Group's core business. Litwin has been operating in the UAE since 1991, currently employing approximately 80 staff, and was included among the group of entities acquired by the Company in 2011. In 2013, Litwin delivered an operating loss of $5.3 million (based on the 2013 audited accounts). Audited gross assets for the Litwin business as at Dec. 31, 2013 totalled $9.1 million, however there is an overall net liabilities position in the business.
The Group will continue with its process to dispose of the other non-core service businesses but only if acceptable terms can be obtained and subject to Board approval.
Lamprell will use the proceeds from this disposal to support general working capital requirements on its core business streams.
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