24th Apr 2014 11:44
LONDON (Alliance News) - Building products specialists SIG PLC Thursday said it has sold its home insulation installation and contracting businesses, Miller Pattison Ltd, to boiler and home heating systems specialist Help-Link UK Ltd for a an initial token fee of GBP1.
SIG said the deal includes a deferred cash consideration of GBP1.5 million payable in December 2016 and an earn-out cash consideration of up to GBP6.5 million dependent on the performance of the business over the period to December 31, 2016 - payable in 2017.
In addition, SIG will provide GBP5.3 million in cash to Miller Pattison at completion. Future proceeds from the divestment will be used for working capital purposes, it said.
"This divestment follows a significant downturn in market volumes due to the end of the Carbon Emissions Reduction Target scheme, subsequent lack of traction from the Green Deal and continued market uncertainty surrounding the Energy Company Obligation," SIG added.
For 2013 Miller Pattison made a pretax loss of GBP5.2 million after incurring GBP2.1 million of net restructuring costs and goodwill impairment. It reported sales of GBP24.4 million.
Gross assets for the business stood at GBP29.3 million and net assets at GBP15.6 million at the end of 2013.
SIG expects to incur an associated exceptional charge in 2014 of around GBP13 million relating to the divestment, it said.
The stock was trading at 200.70 pence Thursday, up 0.20 pence or 0.1%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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