Sheffield-based European building products supplier SIG plc said it agreed to sell VJ Technology (VJT) to UK private equity investment firm Primary Capital for about £29.7 million.

VJT is a UK distributor of technical fixings, fasteners and consumables to the infrastructure, commercial and wider construction industry, and part of SIG Distribution.

Last month, SIG suffered a huge shareholder revolt when more than 75% of its shareholders rejected the reappointment of Deloitte as SIG’s auditor just a few months after SIG admitted overstating its profits in previous years.

“The divestment is in line with SIG’s medium term strategy of disposing of smaller, non-core businesses in order to refocus the group’s portfolio and strengthen its balance sheet,” said SIG.

“The strategy review undertaken last year identified VJT’s niche product offering and operating model as being very different to that of the main SIG businesses.”

In the year ended December 31, 2017, VJT reported sales of £31 million, profit before tax of £5 million and operating cash flow of £4.1 million.

“The consideration from the sale is expected to be c.£29.7m, resulting in a gain on sale of c.£7.4m,” added SIG.

” The proceeds will reduce net debt …

“The profits of VJT were excluded from underlying operations for planning purposes and therefore there is no impact on the group’s expectations for current year underlying profit.”