Branded building products distributor Heywood Williams Group (Huddersfield HD3 3AR; www.heywoodwilliams.com) is selling HW Plastics, its Plastic Systems Division, to Latium Plastics Holdings (Wilmslow SK9 5EG) for around GBP 20m (EUR 30m). The sum comprises GBP 3m in cash and an approximate GBP 17m to cover product rectification liabilities and obligations, which mainly relate to discoloration – or pinking – of PVC profiles.

The disposal follows a strategic review by Heywood Williams that decided HW Plastics was non-core. The group intends to grow its LaSalle Bristol business in North America and its Hardware Division in the UK and Europe. Privately-owned Latium has existing cellular building product, window fabrication and installation activities in the UK, including the Everest and Weatherseal businesses. The addition of HW Plastics creates a vertically integrated operation from production through to installation.

HW Plastics is the UK market leader in PVC window systems and cellular building products. It has manufacturing plants in Macclesfield and Scunthorpe, a distribution centre in Trentham and approximately 600 employees. With sales of GBP 65.9m in 2004, it made an operating loss of GBP 4.0m before exceptional items. The net and gross assets of HW Plastics included in the sale, as of 31 December 2004, are GBP 8.5m and GBP 43.6m respectively.