Hanson made a number of successful bolt-on acquisitions. These helped us to develop our presence in several good regional markets, increasing revenues and providing operational efficiencies. .
Meanwhile, Hanson continued to seek disposal opportunities for non-core businesses and when, in December 1993, two disparate companies were sold to a management buy-out team for £90 million, Hanson's earning from corporate divestment in 1993 reached £250 million. The trend continued in the following year when, for example, Seven Seas, the UK vitamins manufacturer, were sold for £150 million. So Hanson searches good opportunities for disposals all the time. .
Till 1998, it had completed the disposal of the businesses outside the building materials sector. Included in the programme were Grove Worldwide, Spectrum Construction, Melody Radio and Air Hanson. The £504.2 million realised from the disposals has greatly strengthened our balance sheet and we now have net cash of £37.6 million. This puts us in a strong position. The sale programme obviously took up a great deal of management time, which can now be fully focused on future growth. .
STRUCTURAL CHANGES .
The four new businesses created from the original Hanson began trading independently on 24 February 1997. The businesses were: Imperial Tobacco, Millennium Chemicals, The Energy Group and Hanson (building products). When it first outlined our strategy at the time of the final demerger, Hanson would become a focused building material company. Non-core businesses would be sold; acquisitions would be disciplined additions to our existing businesses; it would invest in our operations; and it would seek an insurance solution for our US environmental liabilities. Looking back over the past two years, Hanson has done what it said it would do. For these features, Hanson became a holding company. .
The holding company structure is deal for diversified conglomerates where there are few interdependencies between the businesses.
