SIG, the Sheffield-based supplier of specialist building products, is selling its VJ Technology (VJT) business to personal equity firm, Primary Capital.
VJT may be a UK distributor of technical fixings, fasteners and consumables to your infrastructure, commercial and wider construction industry, and component of SIG Distribution.
SIG said the divestment was in line having its medium term strategy of disposing of smaller, non-core businesses so as to refocus the Group’s portfolio and strengthen its balance sheet.
The strategy review undertaken last year identified VJT’s niche product offering and operating model as totally different fot it on the main SIG businesses.
In all seasons ended 31 December 2017, VJT reported sales of 31 million, profit before tax of 5 million and operating income of 4.1 million.
The gross assets of VJT as at 31 December 2017 were 16.4 million.
The consideration within the sale is predicted to generally be c.29.7 million, providing a gain on discount sales of c.7.4 million. The proceeds will reduce net debt.
Completion is predicted on or before 30 June 2018, reducing leverage with the half year.