SIG sells Ice Energy stake
BUILDING products group SIG has sold its stake in renewable energy heating company Ice Energy.
The Sheffield-based firm said the disposal follows “challenging market conditions” resulting from delays to and the slow uptake of the Government’s Renewable Heat Incentive (RHI) scheme.
SIG has sold its 50.6% stake to the existing Ice Energy management team of Andrew Sheldon and Andrew Hillier.
Ice Energy is a renewable energy solutions provider which specialises in ground and air source heat pumps.
The consideration for the divestment includes a nominal initial cash payment of £1 together with an earn-out of up to £5m dependent on the performance of Ice Energy over the period to March 31, 2019. In addition SIG is also providing a £0.85m interest bearing loan to Ice Energy which is repayable in five years.
SIG expects to incur an associated exceptional charge in 2014 of around £8m relating to the divestment, of which around £1m is cash. £3.3m of this charge has already been recognised in the group’s half year results.
