Molins PLC said it will sell it Sandiacre Rose Forgrove (SRF) packaging machinery business based in Nottingham and Pennsylvania to Hayssen Europe Ltd and Hayssen Inc. for 3 mln stg.

Hayssen Europe and Hayssen Inc. are both subsidiaries of Barry-Wehmiller Companies Inc. and the sale is expected to be completed before the end of the year.

At Sep 30, 2006 the book value of the gross assets of SRF was 7.0 mln stg and, after deduction of liabilities to be transferred, the book value of the net assets was 4.8 mln.

Molins said the transaction will result in a book loss of approximately 2.0 mln stg before tax and after expenses of 0.2 mln stg.

The freehold property from which SRF operates will be retained and leased to the purchaser.

Operating losses at SRF were 1.0 mln stg in 2005 on sales of 14 mln stg and 1.2 mln stg in the nine months to Sep 30 on a reduced level of sales.

Source