Alumasc has sold its Levolux division to Talrus Limited, a company associated with private equity investor Rcapital Partners, for just £1.
However, rather like a lower league football club selling a hot teenage prospect to a higher ranked club, Alumasc is getting a cut if the new owners later sell Levolux for more than £1m. Alumasc is due £1m of deferred consideration, repayable from proceeds in excess of £1m, arising from any subsequent disposal of Levolux by Rcapital.
Levolux, which formed part of Alumasc's Building Envelope division, designs, manufactures, and installs solar shading systems, architectural solutions and balconies that are used to enhance buildings and to provide shading solutions to the public and commercial sectors.
Alumasc said that demand was proving slow to recover from the covid-19 slowdown in Levolux's core UK and US markets. In the year to June 2022, the Levolux recorded a loss of £2.0m on sales of £7.8m.
Unlike other parts of Alumasc, Levolux carries out installation – as well as manufacturer and distribution – through a network of subcontractors. Looking to improve finances, the Alumasc board decided that it was non-core and would do better under new ownership.
Alumasc chief executive Paul Hooper said: "We are pleased to have sold Levolux to Rcapital, and wish them and Levolux's employees well as they take the business forward. This disposal completes Alumasc's transition to a supply-only business focused on premium sustainable building products, systems and solutions, and will allow our management team to focus on the organic and inorganic growth opportunities within our core business."
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