Alesco sells Marathon Tyres for $23M

Company News

Alesco Corporation Ltd (ASX:ALS) has sold its Marathon Tyres business for $23 million to a private company associated with the Nesbitt family based in New South Wales.
 
The industrial brands manufacturer expects to book an estimated $9.4 million profit after tax on the sale, after transaction costs. 

Marathon Tyres has been part of Alesco’s portfolio since the late 1990s and the business has operated as part of the Construction & Mining division.

CEO Peter Boyd says the sale allows Alesco now to focus on its core building products businesses servicing the Australian and New Zealand residential and non-residential construction sectors.

The sale is expected to be complete at the beginning of May and Alesco says it will apply the proceeds to the reduction of debt.

In the six months to 30 November 2010 Alesco reported a net profit of $1.8 million.


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