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24 Apr 2014 12:00
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24 April 2014
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SIG plc
("SIG" or "the Group")
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Disposal of Miller Pattison Insulation Contracting Business
SIG plc, a leading distributor of specialist building products in Europe, today announces that it has sold its home insulation installation and contracting business, Miller Pattison Limited ("Miller Pattison" or "the Business"), formerly known as SIG Energy Management Limited, to Help-Link UK Limited ("Help-Link"), a boiler and home heating systems specialist.
The consideration for the divestment comprises:
(i) | nominal initial cash consideration of Β£1; |
(ii) | deferred cash consideration of Β£1.5m payable on 31 December 2016; and |
(iii) | earn-out cash consideration of up to Β£6.5m dependent on the performance of Miller Pattison over the period to 31 December 2016, payable in 2017; |
In addition, SIG will provide Β£5.3m in cash to Miller Pattison at completion. Future proceeds from the divestment will be used for working capital purposes.
This divestment follows a significant downturn in market volumes due to the end of the Carbon Emissions Reduction Target scheme, subsequent lack of traction from the Green Deal and continued market uncertainty surrounding the Energy Company Obligation.
For the 2013 financial year the Business reported sales of Β£25.4m and made a loss before tax of Β£5.2m after incurring Β£2.1m of net restructuring costs and goodwill impairment. Gross assets were Β£29.3m and net assets were Β£15.6m as at 31 December 2013. SIG expects to incur an associated exceptional charge in 2014 of c.Β£13m relating to the divestment.
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Following the sale SIG remains committed to the development of its wider energy management and services offering in all its countries of operation.
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EnquiriesΒ
Stuart Mitchell, Chief Executive Doug Robertson, Finance Director Simon Bielecki, Head of Investor Relations Β | SIG plc | 0114 285 6300 Β 07515 794359 |
Richard Mountain / Nick Hasell | FTI Consulting | 020 3727 1340 Β |
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