SIG in £9m roofing deal

BUILDING products group SIG today said it has sold a roofing business for £9m.

The Sheffield-based quoted group has disposed its German roofing business, which broke even on annual sales of £137m last year, to US private equity firm The Gores Group.

SIG said it expects to incur a £43m non-cash exceptional charge in its 2013 results following the deal.

SIG said that the move, subject to working capital adjustments and regulatory approval which is expected within 30 days, follows a strategic review where the German operation was identified as having consistently underperformed the group’s weighted average cost of capital.

“SIG concluded that the business was unlikely to achieve its medium-term return on capital employed targets,” it said today in a stock market statement.
 
SIG is a leading distributor of specialist building products in Europe with its core markets being insulation and energy management, interior fit out and roofing products.