Alumasc Group Announces Sale of Levolux
Alumasc, a leading provider of premium building products, systems, and solutions, has announced the sale of Levolux Limited to Talrus Limited, a company associated with Rcapital Partners LLP, a leading private investor.
Levolux, a division of Alumasc, designs, manufactures, and instals solar shading systems, architectural solutions, and balconies used to improve buildings and give shade solutions to the public and commercial sectors. Its shading solutions reduce the impact of sunlight on the internal environment occupiers and users.
Demand for new build architectural solutions has taken longer to recover from the COVID-19 recession in Levolux's key UK and US markets, and the company lost £2.0 million on sales of £7.8 million in the fiscal year ending June 2022.
Following a study of the company's operations and prospects, the Alumasc Board agreed that Levolux, with its focus on installation, was non-core and would be better positioned under new ownership. Rcapital is well positioned to assist the Levolux business and management team in returning to a sustainable profit.
The consideration receivable for the sale is £1,000,001 in cash, comprising a nominal initial consideration of £1 together with £1,000,000 of deferred consideration, which is repayable from proceeds over £1,000,000 arising from any subsequent disposal of Levolux by Rcapital.
As a result of this transaction, a non-cash impairment charge of £14.9 million before tax will be taken in the Group's consolidated accounts for the year to June 2022, comprising £11.1 million of goodwill and other intangible assets and £3.8 million of tangible assets.
Levolux is expected to hold £1.4 million of cash at the date of disposal, which will form part of the disposal. As a consequence of the sale, Levolux's results for the year ended June 30, 2022, will be reported separately, as discontinued operations, within the Group's consolidated annual results.
Paul Hooper, Alumasc CEO, said:
"We are pleased to have sold Levolux to Rcapital, and wish them and Levolux's employees well as they take the business forward. This disposal completes Alumasc's transition to a supply-only business focused on premium sustainable building products, systems, and solutions, and will allow our management team to focus on the organic and inorganic growth opportunities within our core business".
Source: Alumasc Group
