SIG sells interiors manufacturing business
INSULATION and specialist construction products business SIG has sold its loss-making interiors manufacturing business to Laidlaw Interiors Group, backed by private equity firm Rutland Partners, for £14m in cash.
SIG Interiors Manufacturing designs, manufactures and supplies doorsets, partitions, washrooms and glazing products in the UK, principally to non-residential markets.
The business trades under the brands of Leaderflush + Shapland, Komfort Workspace, Cubicle Systems and SIG Glazing Services.
SIG said in May all its divisions in the UK had shown growth, except for Interiors Manufacturing, which has been impacted by weak trading conditions in the non-residential sector.
Sheffield-based SIG recently sold its UK scaffolding and fencing sale and hire business to Altrad Group S.A. for £7.1m in cash, with the potential for a further contingent receipt of £1m depending on future profits.
The gross assets of SIG Interiors Manufacturing were £41.8m at December 31 last year. The business made a loss before tax of £49.2m, after restructuring and goodwill impairment charges, and a pre-exceptional operating loss of £2.4m on revenues of £83.2m.
The proceeds of the sale will be used to reduce SIG’s net debt.
Chris Davies, chief executive of SIG, said: “Consistent with our key strategic initiative to improve performance by actively managing the group’s portfolio of businesses, we are pleased to announce the sale of SIG Interiors Manufacturing to Laidlaw and Rutland Partners.
“This divestment, together with the recent disposals of our scaffolding and safety and workwear businesses, enables us to better focus on our core distribution and merchanting operations and helps to rebalance the group’s exposure further towards residential markets.”
SIG was advised by a team from law firm Pinsent Masons led by corporate partner Philip Goldsborough together with senior associate Shiv Sibal and associate Michael Walby.
Mr Goldsborough saod: “We are delighted to have advised SIG on the strategic disposal of its Interiors Manufacturing business which, together with the recent divestments of its scaffolding and safety and workwear businesses, will enable SIG to focus on and develop its core operations and markets going forward.”
Altium Capital provided financial advice to SIG, while law firm Eversheds acted for Laidlaw Interiors Group. Robin Johnson led the Eversheds team, based in Leeds, assisted by Edward Waldron and Wyn Jones.
Completion of the deal is expected following a period of employee consultation.
