SIG : Completion of Air Handling Division sale

3 February 2020

Sale of the Air Handling Division to France Air Management

SIG plc ('SIG' or the 'Company') is pleased to announce that on 31 January 2020 it completed the sale of its Air Handling Division to France Air Management SA for an enterprise value of EUR222.7m (c.£187.0m¹) on a cash free, debt free basis (the 'Disposal'). The net proceeds received by SIG were EUR180.9m (c.£151.9m¹), exclusive of the repayment of debt owed to SIG by the Air Handling Division of EUR40.9m (c.£34.3m¹). The net proceeds are subject tocustomary post-completion adjustment for actual levels of cash, debt and working capital in the Air Handling Division at completion.

The Disposal, together with the sale of the Company's Building Solutions business (when finalised), will complete the transition to a robust balance sheet with a net cash position on a pro forma basis and flexibility for increased investment and returns to shareholders. No decision has yet been made as to the nature, timing and quantum of any returns to shareholders.

Following these two disposals, SIG will focus on its leading positions as a specialist distributor of insulation and interiors products in seven countries across Europe and a merchant of roofing and exteriors products in the UK and France.

LEI 213800VDC1BKJEZ8PV53

Contacts

SIG plc			[phone]
Nick Maddock	Chief Financial Officer
Katharine Baxter	Group Communications
FTI Consulting			[phone]
Richard Mountain
Lazard - Financial adviser to SIG			[phone]
Cyrus Kapadia / Vasco Litchfield / Anthony Sobhi
Peel Hunt LLP - Sponsor and joint broker to SIG			[phone]
Nicholas How / Sam Cann
Jefferies International Limited - Joint broker to SIG			[phone]
Ed Matthews / Will Soutar

Note

1. Based on GBP : EUR foreign exchange rate of 1.191, as at 31 January 2020

Cautionary statement

This announcement is not intended to, and does not constitute, or form part of, any offer to sell or an invitation to purchase or subscribe for any securities or a solicitation of any vote or approval in any jurisdiction. The information contained in this announcement is not for release, publication or distribution to persons in any jurisdiction where to do so might constitute a violation of local securities laws or regulations.

Important information relating to the financial adviser and the sponsor

Lazard & Co., Limited, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting exclusively for SIG and for no one else in connection with the Disposal and will not be responsible to anyone other than SIG for providing the protections afforded to its clients or for providing advice in connection with the Disposal, the contents of this announcement or any other matter referenced above. Neither Lazard & Co., Limited nor any of its affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, tort or otherwise) to any person who is not a client of Lazard & Co., Limited in connection with the Disposal, any statement contained herein or otherwise.

Peel Hunt LLP, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively for SIG and no one else in connection with the Disposal and will not be responsible to anyone other than SIG for providing the protections afforded to clients of Peel Hunt LLP or for providing advice in relation to the Disposal, the contents of this announcement or any transaction, arrangement or other matter referred to in this announcement.