SIG disposes of stake in Ice Energy
SIG has sold its 50.6 per cent stake in Ice Energy Technologies to the management team of Andrew Sheldon and Andrew Hillier. The Sheffield-headquartered specialist building products distributor said it would incur a one-off charge of £8m relating to the sale.
Ice Energy is a renewable energy systems provider which specialises in ground and air source heat pumps.
SIG said the disposal followed challenging market conditions resulting from delays to, and the subsequent slow uptake of, the UK government's Renewable Heat Incentive (RHI) scheme.
The consideration for the divestment comprises a nominal initial cash payment of £1 together with an earn-out of up to £5m dependent on the performance of Ice Energy over the period to 31 March 2019.
In addition SIG is also providing a £850,000 interest bearing loan to Ice Energy which is repayable in five years.
SIG expects to incur an associated exceptional charge in 2014 of about £8m, of which about £1m is cash. Of this charge, £3.3m has already been recognised in the group's half year results.