GLYNWED BUYS GALLAHER UNITS FOR AROUND 14 MLN STG
Glynwed International Plc <GLYN.L> said it
had bought all the issued shares of two companies belonging to
Gallaher Ltd, a subsidiary of American Brands Inc <AMB>, in a
deal worth around 14 mln stg.
    The full names of the companies purchased from Gallaher are
<Formatura Iniezione Polimeri Spa>, Genoa and <FIP U.K. Ltd>,
Weybridge.
    Consideration for the purchases, which will be based on the
net asset values per share of the companies, has yet to be
finalised but some nine mln stg of the total represents debt
assumed by Glynwed.
    FIP is a manufacturer of valves and other pressure pipe
fittings in thermoplastics. Its products are complementary to
those of Glynwed subsidiaries, Durapipe U.K. And Philmac.
    The acquisitions appreciably develop and strengthen
Glynwed's strategic position in the thermoplastic pipework
systems market.
    The sale by Gallaher reflects a decision to dispose of more
peripheral businesses. Proceeds of the sale will be used in the
continuing expansion of the Gallaher group. Glynwed shares were
up 5p to 494 after the announcement. Gallaher is not quoted on
the London Stock Exchange.
 REUTER
