Low & Bonar to sell flooring business

Construction materials company Low & Bonar has announced plans to sell its contract flooring business to Forbo Holding for £123m.

The group said the disposal would allow it to focus on the technical textiles side of the business.

Low & Bonar chief executive Paul Forman said: “It is not easy to let go of part of our heritage but the Forbo offer presented the right opportunity for us to exit the contract flooring business and pursue a long-term strategy focusing on the higher-growth technical textiles market.

“The disposal delivers good value to our shareholders. It also gives us the resources to focus exclusively on the significant opportunities - both organic and acquisitive - to grow our share of the fast-growing but highly fragmented market for technical textiles, building on the strong position we already enjoy.”

Shareholders will be asked to approve the sale in mid-August and completion is expected by late October.