Kalamazoo has shed its security printing division after 100 years of business to focus entirely on computer systems, fuelling the likelihood of a takeover.
Kalamazoo confirmed it was still in talks with companies interested in its acquisition. Sphinx CST parent Lynx Holdings pulled out of talks in June after disappointment at the ?slow rate of progress?.
US software house ADP, which previously announced it was looking to acquire UK-based computer systems companies in niche market sectors, has emerged as the favourite to pick up Kalamazoo.
Last week, the printing division was sold to the Dublin-based Adare Group for #12.7 million. The division had been suffering from patchy results in recent years but recovered last year to report a pre-tax profit of #1.2 million on sales of #19.3 million.
Divesting the group of the printing division leaves Kalamazoo free to concentrate on its two existing arms, the international and UK computer businesses.
Bob Jordan, managing director of Kalamazoo, said: ?The disposal leaves Kalamazoo as a pure computer solutions business, better able to pursue a strategy of focused international growth in computer-related niche markets.?
Kalamazoo will now focus on selling computer systems into the motor trade.
The printing division sale coincides with a 34 per cent fall in Kalamazoo?s pre-tax profits to #3.8 million for the year ended 31 March, although turnover increased by 19.2 per cent to #77.7 million.
Profits were understood to be dented by a #2 million charge for a litigation settlement with franchises of the former print shop business, and by the acquisition of US company CFS International in March.
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