(Alliance News) - Performance materials firm Low & Bonar PLC has, it said Thursday, sold the Needle-Punched Non-Wovens unit, meaning the disposal of its Civil Engineering division is complete.
The business has been sold to Netherlands-based private equity fund Nimbus for EUR17.3 million.
The sale will allow Low & Bonar to reduce debt, it said, and invest into more profitable parts of the business.
Executive Chair Daniel Dayan said: "We are pleased to announce the disposal of the Needle-Punched Non-Woven business as part of our strategy to simplify our portfolio, pay down debt, and to improve focus on our core business.
"We have found a good buyer, who is very eager to work with the existing teams in Belgium and Hungary to enable the further growth and development of this business. The disposal of the Civil Engineering division has been a strategic priority for management this year and we are pleased to complete this important milestone as we continue to work to improve shareholder value."
In June, the firm guided for a "small" interim profit, and it has already sold the Construction fibres part of the Civil Engineering division for EUR6.4 million. The firm has also said interim figures will be "materially behind" year-on-year.
Former Chief Executive Philip de Klerk's departure was announced at the same time.
Shares were up 3.8% on Thursday morning at 9.55 pence each, though a year ago they were at 45.42p.