UK windows and doors maker Heywood Williams today unveiled a £20m (€29m) deal to sell its plastics division to the owner of Everest and Weatherseal double glazing.
Heywood said the sale of the loss-making business to Latium would allow it to focus on core areas including its door hardware division in the UK and Europe.
The group added the move, which is subject to approval by its shareholders, would be “significantly” earnings enhancing.
HW Plastics is the UK market leader in PVC windows, selling its products under five brands including Spectus, Kestrel and HW Systems.
It operates two manufacturing plants in Macclesfield and Scunthorpe as well as a distribution centre in Trentham, employing a total of around 600 staff.
During the year to December 31, the division reported sales of £65.9m (€96.7m) - around a fifth of group sales – and operating losses before exceptional items of £4m (€5.9m).
Heywood Williams announced last month that it was planning to sell the plastics arm after a strategic review concluded it was not key to its future development.
The £20m (€29.3m) includes £3m (€4.4m) in cash and around £17m (€24.9m) in liabilities attached to the business.
Group chief executive Robert Barr said the group was selling HW Plastics at a “fair” price, eliminating potential future operating losses.
He said: “This is a satisfactory outcome for both companies and provides continuation of employment for the employees of HW Plastics.”
Heywood Williams will now focus on LaSalle Bristol – its US division that makes parts for mobile homes – as well as its UK hardware arm.