SIG PLC (LON:SHI) said it has agreed to sell VJ Technology (VJT), a maker of fasteners and technical fixings, to UK private equity investment firm Primary Capital following a competitive disposal process.
The FTSE 250-roofing and insulation supplier said the consideration from the sale was expected to be around £29.7mln, resulting in a gain of around £7.4mln which would be used to reduce net debt.
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SIG added that the sale was expected to complete on or before 30 June and was in line with its medium-term strategy of “disposing of smaller, non-core businesses in order to refocus the group's portfolio and strengthen its balance sheet.”
They added that a strategy review last year had concluded that VJT’s niche product offering and operating model was “very different” to the group’s main business.