Molins PLC (LON:MLIN), the packaging solutions group, is to sell its Instrumentation & Tobacco Machinery division to Italian packaging group Coesia for £30mln.
The shares shot up 24% to 98.1p on the news.
The money from the sale will largely be ploughed into the group's packaging machinery activities.
“Molins has a presence in large and attractive growth markets, an enviable portfolio of global multinational customers, an impressive range of innovative technologies and above all a very talented and engaged workforce. With the proceeds from the sale of I&TM, I am even more confident about the growth opportunities for the group," said Tony Steels, chief executive officer of Molins.