Low & Bonar has agreed to sell its Construction Fibres (CF) business, which is part of its Civil Engineering division, for £5.6m cash to Adfil NV and Industria BV.
Adfil, which will buy the business and production assets, is owned by a private Belgian investor. Industria, which will purchase the CF factory in Zele, Belgium, is owned by parties connected with Adfil.
Under the terms of the agreement, all employees of CF will transfer with the business and no redundancies are expected. The deal is expected to complete on or around 1st July 2019.
Low & Bonar is shedding its entire Civil Engineering division to allow it to reduce debt and invest in more profitable parts of its business.
As part of this strategy, it is also working on a deal to sell its Needle-Punched Non-Wovens business, the remaining and larger part of the Civil Engineering division.
Low & Bonar chief executive Philip de Klerk said: "We are pleased to announce the disposal of the Construction Fibres business as part of our strategy to simplify our portfolio and to improve our core business. We have found a very good buyer, who will be able to further grow and develop this business. We are also progressing well with the disposal of the Needle-Punched Non-Woven business and are seeking to conclude a full disposal of the Civil Engineering division during the current year."