21st Nov 2006 07:00
SIG PLC21 November 2006 DISPOSAL OF U.S. BUSINESS AND ACQUISITION UPDATE Sale of U.S. Business SIG plc, the leading supplier of insulation, roofing and commercial interiorsproducts, announces the disposal of its US business to Grey Mountain Partners.Proceeds from the sale amount to $51m in cash. This sum is slightly higher thannet asset value, resulting in a small profit on disposal. David Williams, Chief Executive of SIG, commented, "Although the US business hasperformed extremely well over recent years, our rate of growth and expansion inthe UK, Ireland and Mainland Europe has been such that the US today accounts forless than 4% of total Group sales. Given the future opportunities for SIG within the UK, Ireland and MainlandEurope, our strategy is to concentrate our resources towards these territories.On this basis, it makes sense for the US business to be allowed to developoutside the SIG Group". Acquisition Update Within the 2006 Interim Results Announcement released on 12 September 2006, thecompany informed shareholders that it had completed 12 acquisitions up to thatdate in 2006 with combined annual sales of circa £115m. Since that date, a further 9 acquisitions have been completed. These are again broadly spread across the Group's existing business streams andincrease coverage in the UK, Ireland and Poland. This takes the combined total of acquisitions completed so far in 2006 to 21,with combined annual sales of circa £210m. Total consideration for these 21transactions amounts to circa £88m including assumed debt. Trading Current trading is in line with expectations, and the Group is confident ofmeeting analysts' consensus expectations for 2006. Enquiries: David Williams, Chief Executive, SIG plc 0114 285 6300Gareth Davies, Finance Director, SIG plc 0114 285 6300Gordon Simpson, Finsbury 020 7251 3801Kirsty Flockhart, Finsbury 020 7251 3801 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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