OCT 99] J & J CASH NEWS
J & J Cash Heading For Management Buyout
name-tag maker J & J Cash looks set to be part of a management buyout.
The Torrington Avenue-based company, who manufacture badges
for many of the Premiership football shirts including Coventry City, is part of the Jones
The group also owns JSI/Marflex, which make electrical and
thermal insulation materials, Anglo American Vulcanised Fibre, Beam Tubes and textile
The group is currently controlled by David and Philip Jones
who founded the company and own over 60% of the shares, but the pair are both now at
retirement age and looking to sell their stake.
Jones Stroud has now agreed to sell the group to management
in a deal that is believed to be worth around £30 million and covers all five of the
companies under its umbrella.
The management buyout is led by Dr Andrew Ives, the group's
Coventry-based chief executive who believes the company has a great future.
"In taking the group into private ownership, we
believe that the offer provides the best route forward for all parties with an economic
interest in Jones Stroud."
The management buyout team has set up a new company
Composite Materials Technology plc (CMT), and if the offer is approved Ives will own
approximately 40% of the new company.
Jones Stroud chairman Philip Jones admitted that the deal
was now progressing.
"We recommend the offer to shareholders as the most
appropriate way to maximise the value of their shares in view of the alternatives
available to the company."
Coventry-based J & J Cash has been making high quality
woven clothing labels and badges for school blazers since 1852 and was famously called
upon to provide name tags for Prince Charles school uniform.
The company also has long standing deals with some of the
leading design houses in the world, and last year made sales of £77 million.