Music specialist agrees £33m sell-off

Now the company wants to sell its sheet music division

Music publisher Boosey & Hawkes is selling its musical instruments division for £33m.

The deal, with private equity group Rutland Fund Management, will see B&H split in two.

The group then aims to sell its remaining division, which publishes sheet music.

B&H has manufacturing operations in Watford, Hertfordshire, Germany, France, the USA and India.

Production problems However, the group said the instrument division's trading performance had "weakened further" in the second half of 2002 as difficult market conditions in America and production problems in Germany continued.

B&H pulled out of exclusive takeover talks with a consortium in 2001 and embarked on an open auction process either for the whole business for the one of the two divisions.

On Tuesday the group said it now intends to finalise discussions with potential buyers for the remainder of the business "as soon as practicable".

Proceeds of the Boosey disposal will be used to repay debt which stood at £39.3 million at 31 December.

'Attractive price'

Last year group profits fell to £900,000 for the six months to 30 June against £1.2m the year before.

B&H was founded in 1930 through the merger of two family businesses.

Completion of the acquisition is conditional on the approval of B&H shareholders.

Rutland said it was buying "an outstanding collection of brands at an attractive price".