Specialist building materials producer SIG (LON:SHI) has agreed to sell its VJ Technology subsidiary to UK private equity outfit Primary Capital for an expected consideration of £29.7 million. VJ Technology, which makes fixings and fasteners, had reported sales of £31 million last year and earned £5 million in profits before tax.
Management expect that the deal will complete before the 30th of June and said that the proceeds would be used to reduce debt levels. The company also said that since VJ Technology had been excluded from the underlying financial plans, the sale has no impact on guidance for the current year. Shares in SIG were 136p at 14:30 BST after a volatile morning.