4th Feb 2014 08:24
LONDON (Alliance News) - SIG PLC said Tuesday it has sold its German roofing business to a US-based private equity firm in a GBP9 million deal.
The distributor of specialist building products said the deal with The Gores Group is subject to working capital adjustments and customary regulatory approval, anticipated within the next 30 days.
The Los Angeles-based private equity firm specialises in acquiring and partnering with mature and growing businesses.
After a strategic review, and having consistently underperformed the Group's weighted average cost of capital, SIG said that it concluded that the business was unlikely to achieve its medium-term return on capital employed targets.
The German roofing business reported GBP137 million in sales and a net result around the break-even point last year.
SIG added that it expects to incur an associated non-cash exceptional charge in 2013 of about GBP43 million relating to the sale.
Shares in SIG were trading down 1.48% at 193.2 pence per share Tuesday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
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