Bosses bid for Hestair
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• Hestair's vehicle engineering division is to be bought out by its senior managers, led by division chairman Geoff Hollyhead.
The division includes coachbuilder Hestair Duple, chassis manufacturer Dennis Specialist Vehicles, refuse collection vehicle specialist Dennis Eagle, and CKD bus body exporter Duple (Metsec).
The reasons behind the buyout are thought to be City re servations about Hestair's market diversification (it acquired Cindico, the nursery product manufacturer for 22.3 million this week) and the improved profitability of the vehicle division.
Investors apparently see Hestair's disparate activities as a bar to giving the company a higher stock market rating. Hestair's deputy chairman Richard Raworth told Commercial Motor that the buyout has
come at the right time. "We feel the company is now solid and it has a good cash flow, which is very important for management buyouts. Splitting the vehicle division off will give Hestair a clearer image."
Raworth says there was "no dissension whatsoever" from the Hestair board when Hollyhead made his pitch, He believes the deal will be concluded by January and foresees no hiccups.