- Performance materials group Low & Bonar agreed to sell its Construction Fibres business for €6.4m to Adfil NV and Industria.

The disposal would include the sale of all of the assets of the CF business, including part of the group's factory in Zele, Belgium and the associated inventory.

Adfil NV, which would purchase the business and production assets, was owned by a private Belgian investor, the company said. Industria BV, which would purchase the CF factory site, was owned by parties connected with Adfil NV.

The transaction, expected to complete on or around 1 July, would be 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 would transfer with the business and no redundancies were anticipated.

The sale was consistent with management's stated intention of disposing of its Civil Engineering division to allow it to further reduce its net debt levels and invest in more profitable parts of its business.

'We have found a very good buyer, who will be able to further grow and develop this business. We are also progressing well with the disposal of the Needle-Punched Non-Woven business and are seeking to conclude a full disposal of the Civil Engineering division during the current year,' the company said.

At 8:00am: [LON:LWB] Low Bonar PLC share price was -0.2p at 9.8p

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