LONDON, UK: Alumasc Group, the premium building products, systems, and solutions group, has sold Levolux Limited to Talrus Limited, a company associated with Rcapital Partners LLP, a leading private Investor.

Levolux, which formed part of Alumasc’s Building Envelope division, designs, manufactures, and installs solar shading systems, architectural solutions and balconies that are used to enhance buildings and to provide shading solutions to the public and commercial sectors. Its shading solutions reduce the impact of sunlight for the occupiers and users of the internal environment.  

Demand for new build architectural solutions has taken longer to recover from the Covid-19 slowdown in Levolux’s core UK and US markets, and in the year to June 2022, the business recorded a loss of £2.0 million on sales of £7.8 million.

After a review of the business and its prospects, the Alumasc Board agreed that Levolux Limited, with its focus on installation, was non-core and it would be better positioned under new ownership. Rcapital is well placed to support the Levolux business and management team to return the business to 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 in excess of £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 Limited 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 30 June 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”.