Building materials group SIG has agreed the sale of its Building Solutions (National) Limited business to Kingspan’s panels division for £37.5m.
SIG is also selling its Air Handling Division to France Air Management SA for £198.3m.
Most of the proceeds will go to reduce SIG’s debt, which at the end of last year stood at £270m, giving it a debt/equity ratio of 1.36.
SIG Building Solutions includes the brands Steadmans, United Roofing Products, Trimform Products, and Advanced Cladding & Insulation. It made an operating profit of £3.3m in 2018 on revenue of £60m.
The sales follows a strategic review at SIG in 2017 that resulted in a decision to sell non-core businesses. The Building Solution operation was consixdered non core because it is more focused on manufacturing than distribution.
SIG chief executive Meinie Oldersma said: "This disposal, on attractive terms, is in line with SIG's medium-term strategy and completes the exit of peripheral, non-core businesses identified in our 2017 strategic review."
Completion of the deal is conditional on completing the Competition & Markets Authority's clearance process.
This article was first seen on https://www.theconstructionindex.co.uk/news/view/kingspan-to-pay-375m-for-sig-building-solutions