CPP disposes of German card protection legacy business
The Leeds-based CPP Group today revealed that it had disposed of its German card protection legacy business.
CPP Group has completed the sale of CPP Creating Profitable Partnerships GmbH to Deutsche Schutzbriefgesellschaft GmbH.
Total consideration for the disposal has been agreed at £2.3 million which, after adjustment for working capital, will result in the group receiving cash proceeds of approximately £2.2 million before transaction costs.
In a statement, CPP Group said: "The disposal is in line with the group's commitment to maximising value from its assets and focusing on the areas of the business that have the strongest prospects for delivering sustainable and profitable medium to long-term growth.
"In line with the group's capital allocation priorities, the proceeds will be used to strengthen the group's working capital base, provide additional financial flexibility to deliver its growth strategy, and ultimately enhance returns for shareholders.
"CPP will retain a presence in the German market managed through its UK operation, continuing to offer innovative, digital-led products to meet demand from its business partners in the market. This includes the potential for further distribution arrangements via Mehrwerk."