JSE-listed Group Five will sell its Everite and Sky Sands subsidiaries to a consortium comprising Trinitas Private Equity and Agile Capital for R480-million.
The subsidiaries form part of the firm's manufacturing cluster.
The sale follows after Group Five, in November 2017, re-evaluated the group's strategy and structure to address its underperformance. As part of that process, the firm decided to reposition itself in chosen markets and to focus on core businesses that would provide growth and improve margins and returns.
Group Five, therefore, decided to sell its manufacturing assets to reduce its debt.
The remaining asset in the group's manufacturing cluster, the reinforcing steel business Barnes Reinforcing Industries, will be sold to the Barnes family – Group Five's joint venture partner in the business. This transaction is expected to be concluded early in the second half of this year.