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Sun October 20 2019

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Kingspan to pay £37.5m for SIG Building Solutions

7 Oct 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.

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