Torex sells businesses for £204m
Torex Retail plc has sold its operating businesses to US private investment firm Cerberus European Investments for £204.4m.
Torex, owner of pub tills operation XN Checkout which has units installed in thousands of pubs across the UK, has been the subject of an investigation by the Serious Fraud Office.
The businesses sold include all of the subsidiary companies globally, including the retail, hospitality and petrol and convenience divisions.
In a statement the group said the transaction would "enable Torex to advance its strategic objectives, consolidate, grow and reposition itself as the leading global independent supplier of retail software solutions.
"This enables Torex to move beyond issues that have impacted the former holding company, which is not being acquired. Torex management will focus on solution development, business integration, and drive quality of service that ensures customer satisfaction."
Keith Pascal, Divisional Managing Director, Torex Retail's hospitality division said, "I am delighted that the financial future of Torex has been secured and that the new owner has a long-term commitment and operational expertise.
"There has never been a doubt about the quality of Torex' product base or our commitment to our strong customer relationships, and this change of ownership will enable us to genuinely integrate the businesses and build on our already leading market position."
Steve Marshall, chairman of the Holding Company, commented: "The sale of the business was the only viable option available to the board and it was achieved despite breathtaking corporate governance and financial issues at plc level, the scale and extent of which neither I nor my board colleagues have seen in corporate life.
"Against this background, huge efforts have been made to extract as much value as possible from this uniquely challenging situation. This will be of little comfort to Torex Retail's shareholders, or to the holding company's unsecured creditors, to whom no value will accrue given the numerous issues bearing down on the Company.
"The consideration is insufficient to fully repay the sums due in respect of the Holding Company's secured bank loans which include the additional £35m the Board negotiated in order to provide time to conduct an orderly sale process.
"However, the sale of all of Torex's operating subsidiaries to a substantial new owner is excellent news for customers, suppliers and, not least, more than 2,500 employees. With its future secured, the Torex businesses can now be properly integrated, developed and taken forward."
