Zele (Belgium), 3 June 2019 - The Low & Bonar Group has announced that it is to sell its construction fibres business (“Adfil”) (situated in Zele, Belgium and in the UK) to Adfil NV (a company owned by a Belgian private investor (“Buyer”).
The proposed sale is consistent with Low & Bonar’s stated intention of disposing of the whole of its Civil Engineering business unit to allow it to further reduce its debt levels and invest in more profitable parts of its business. The Adfil business (which is part of Civil Engineering) has an established leading market position and an excellent customer base. It will be better served by an independent future and new ownership who will continue to drive and develop business growth.
The transaction is expected to complete on or around 1 July 2019, subject to the fulfilment of a limited number of conditions in the sale agreements and the buyer's financing arrangements, including the satisfactory completion of an information and consultation process with the employees affected by the disposal, which commenced today. Under the terms of the agreement, all employees of CF will transfer with the business and no redundancies are anticipated.