UK building materials supplier SIG has agreed to sell its Building Solutions (National) business to Co Cavan-based Kingspan for £37.5m on a cash free, debt free basis.
Building Solutions manufactures and distributes building solutions operating through its well-known brands, Steadmans, United Roofing Products, Trimform Products and Advanced Cladding & Insulation.
The business had reported revenue of £60m, operating profit of £3.3m and operating cash flow of £5m, with gross assets of about £28.8m for last year.
Meinie Oldersma, chief executive of SIG, said the disposal and its "attractive terms", is in line with SIG's medium-term strategy.
The CEO said it completes the exit of peripheral, non-core businesses identified in the company's 2017 strategic review.
Meanwhile, SIG also said today that it expects significantly lower annual profit in its specialist distribution and roofing merchanting businesses as it battles further deterioration in construction activity in key markets.
Contraction in manufacturing activity globally, including those key markets have taken a toll on the company.
In the UK, the construction slump worsened in September with data showing the commercial and civil engineering sectors contracting at the fastest in around a decade ahead of Brexit.
"This deterioration in trading conditions has accelerated over recent weeks, and political and macro-economic uncertainty has continued to increase," the company said.
The Sheffield-based company expects significantly lower underlying profitability in both its specialist distribution and roofing merchanting businesses, and said it was taking actions to address the continuing market weakness - without divulging specific details of those plans.
The company, which had repeatedly sounded warnings of a hit from Britain's construction industry woes, also separately announced the disposal of its air handling division as well as its building solutions business.
