Listed firm completes £187m division sell off

Sheffield-headquartered building materials specialist SIG has finished selling off one of its divisions to France Air Management SA.

SIG sold its its Air Handling Division for an enterprise value of EUR222.7m (c.£187m) on a cash free, debt free basis.

The net proceeds received by SIG were EUR180.9m (c.£151.9m), exclusive of the repayment of debt owed to SIG by the Air Handling Division of EUR40.9m (c.£34.3m).

In an update on the sale released today, a spokesman for SIG said: “The disposal, together with the sale of the company’s Building Solutions business (when finalised), will complete the transition to a robust balance sheet with a net cash position on a pro forma basis and flexibility for increased investment and returns to shareholders. 

“No decision has yet been made as to the nature, timing and quantum of any returns to shareholders.

“Following these two disposals, SIG will focus on its leading positions as a specialist distributor of insulation and interiors products in seven countries across Europe and a merchant of roofing and exteriors products in the UK and France.”

SIG first announced last year that it was proposing to sell off these two divisions of its business.

Commenting at the time on its intended sale to France Air, SIG said at least £130m of the net cash proceeds would be used to reduce the company’s financial indebtedness.

And it noted that most of any residual net cash proceeds would be used to make a return to shareholders.