WHATMAN, the long-established filtration and medical services firm, has eased some of its worries by selling a loss-making American subsidiary.

The sale of the Whatman HemaSure blood filtration business to Pall Corporation for £3.72 million removes two nasty headaches for the Maidstone company with plants in Allington, Springfield Mill, and Parkwood.

Apart from ridding itself of a loss-maker, it also removes the threat of further legal action. A case has been going through the American courts for some time. Under the deal, Whatman and Pall have agreed to settle all outstanding litigation. The HemaSure sale remains subject to the formal endorsement of the Colorado and New York courts, but is expected to go through in January.

The disposal will eliminate operating losses estimated at £3.4 million in 2002. The value of net assets involved in the sale is £1.7 million and the transaction will result in an £8 million write-off of goodwill after other costs.

The company said sale proceeds would be used to reduce debt. Bob Thian, Whatman chairman, said: "The divestment of the HemaSure business will allow our management team to focus its efforts on realising the full potential in Whatman's core businesses."

Whatman has suffered a torrid time in recent years, with two chief executives fired and shareholders unhappy with the firm's "flawed" acquisition strategy and plunging share price.