BTR PLC - Disposal

RNS No 1046f
BTR PLC
31st July 1998


Sale of BTR's Aerospace Business

BTR plc today announces the sale of its aerospace
businesses ("Aerospace") to Doughty Hanson & Co. for a
price of #510 million in cash.  The transaction is
subject to regulatory approvals, and accordingly is
expected to be completed by 30 September 1998.  This
transaction represents a multiple of 2.1 times 1997 sales
and 9.8 times 1997 profit before interest and tax.  The
businesses being sold were part of Specialist
Engineering, and comprise:

-    Standard Aero - aero engine repair and overhaul;

-    Dunlop Aviation Division - manufacture and servicing
     of aircraft wheel and brake systems;

-    Aero Engine Equipment - manufacture of components
     for large turbofan aircraft engines;

-    Dunlop Precision Rubber - manufacture of seals,
     mouldings and extrusions for aerospace use.

Commenting on the sale, Ian Strachan, Chief Executive of
BTR said: "In September 1996 we outlined our
determination to focus on engineering businesses which
either already have global scale or have the potential to
achieve it in a way that will enhance shareholder value.
Within the rapidly consolidating aerospace industry, our
aerospace businesses are attractive to leading industry
players.  Although profitable businesses, they are small
in terms of BTR and their sector, and are not able to
achieve our stated goals effectively.  We are very
pleased to have achieved such an excellent price
representing over two times 1997 sales."

The sale was undertaken to focus further BTR's
engineering businesses on those activities where a strong
global market position can be profitably built and
sustained.  In the face of major consolidation in the
aerospace industry, BTR has taken an opportunity to sell
its aerospace business at an attractive price.

These businesses do not form part of the Divestment Group
which was identified by BTR in September 1997.

In the year ended 31 December 1997, Aerospace generated
sales of #246 million and profit before interest and tax
of #52 million.  In the six months to 30 June 1998,
Aerospace generated sales of #135 million and profit
before interest and tax of #27 million.  Net operating
assets which are the subject of the transaction are
approximately #215 million.  Profit on disposal, before
goodwill written off, is #295 million; after the
reinstatement of goodwill, BTR will report a profit on
disposal of some #190 million before transaction costs
and tax.

For further information, please contact:

Investors and Analysts

Kathleen O' Donovan                0171 821 3800

Media

Peter Gavan                        0171 821 3712
Andrew Fenwick (Brunswick)         0171 404 5959

END

DISFFFFXVDKZBKQ