Glynwed plc is selling its two plastic sheet and rod distribution companies, Amari Plastics plc in England and Port Plastics Inc. in the United States, to a U.S. company for £18.9 million ($31 million ) in cash.
The purchaser, which Glynwed would not identify, is a privately owned distribution company that trades in other industrial product areas, according to Glynwed.
Port Plastics of City of Industry, Calif., employs 98. The company has seven outlets in the western United States supplying products to the display, packaging and other markets.
Weybridge, England-based Amari, with 14 distribution branches across Britain and Ireland, employs 252 and serves similar markets. Its products are made from PVC, ABS, polycarbonate, thermoset resins and other engineering thermoplastics, plus plastic foams.
In 1997, Amari and Port reported pretax profit of £2.4 million ($3.93 million) on sales of £63 million ($103 million). But a company spokesman said market demand was down in 1998, and the more recent fiscal year is not likely to be as strong. Glynwed will report its 1998 results in March.
The plastics distribution firms were originally part of Glynwed's metals distribution business. But the Birmingham, England-based parent company sold its metals operation in May.
Glynwed is restructuring to focus on its pipe, consumer product and food-service businesses. Chief Executive Officer Tony Wilson said the company will use funds from the distribution business sale to reduce debt after its £174 million ($285 million) purchase of Friatec AG last year. The Frankfurt, Germany-based company makes high density polyethylene pipe and fittings for the gas and water markets.