Disposal

RNS Number:5124M
Heywood Williams Group PLC
19 June 2003

19 June 2003



                           HEYWOOD WILLIAMS GROUP PLC

                    Proposed disposal of the Creation Group



Heywood Williams Group PLC ("Heywood Williams" or the "Group") is pleased to
announce that Heywood Williams USA, Inc. has entered into a conditional
agreement for the sale of the Creation Group to Dura Automotive Systems, Inc.
for a consideration of US$60.0 million (#35.7 million). The consideration
comprises an initial US$57.0 million payable in cash on completion and a further
consideration of up to US$3.0 million which would become payable if the Creation
Group achieves certain revenue targets during the twelve months following
completion.

The disposal is conditional, inter alia, upon the approval of Heywood Williams'
shareholders and upon clearance by the relevant US anti-trust authorities. A
document containing a notice convening an extraordinary general meeting of
shareholders to approve the disposal is being dispatched to shareholders today.

The Creation Group is a leading manufacturer of windows, doors and aluminium
fabricated parts to the recreational vehicle market and to the automotive
aftermarket for light truck caps in the US. It is headquartered in Elkhart,
Indiana, operates ten manufacturing and warehouse facilities in Indiana, Ohio
and Pennsylvania, and has around 1,100 employees. For the year ended 31 December
2002, the Creation Group generated operating profit of US$8.7 million (#5.4
million) on turnover of US$145.4 million (#96.9 million). EBITDA for the year
ended 31 December 2002 was US$11.6 million (#7.7 million). The net assets of the
Creation Group at 31 December 2002 were US$27.7 million (#17.3 million).

The disposal of the Creation Group is consistent with Heywood Williams' strategy
to focus the Group on organic development in the core UK windows, doors and
conservatory market. The disposal will also strengthen Heywood Williams' balance
sheet as the Group continues to focus on a turnaround driven by the
restructuring programme in the UK.

Against the background of the difficult trading conditions for Heywood Williams
referred to in the Group's AGM statement, the loss of earnings from the Creation
Group following its disposal is expected to have a material impact on earnings
per share in the short term.

The net proceeds on completion from the disposal of the Creation Group will
amount to approximately #32.2 million and will be used to reduce general
corporate borrowings. Taking into account the strengthening of the Group's
balance sheet that will result from the disposal, it is the Board's intention,
in the absence of unforeseen circumstances, to maintain the full year dividend
for the year ending 31 December 2003 at the previous year's level of 15 pence
per share.

Commenting on the proposed disposal of the Creation Group, Ian Stuart, Heywood
Williams' Group Chief Executive, said:

"This disposal sharpens the Group's focus on our core businesses. It strengthens
our balance sheet and reduces the complexity of the Group."

"Selling Creation at an attractive price advances the Group's strategy and
enhances its ability to deliver a successful turnaround.  The Board unanimously
recommends that shareholders vote in favour of this disposal."





Enquiries:


Heywood Williams                     Ian Stuart                         01484 487 200
                                     (Group Chief Executive)
                                     Laurence Campbell
                                     (Group Finance Director)

Financial Dynamics                   Jon Simmons                        020 7831 3113




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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