Industrial business Schaffer Corporation has sold its Urbanstone manufacturing subsidiary to Brickworks for $13.5 million.
Urbanstone, which like Schaffer is based in Perth, manufactures and distributes premium paving and masonry block products around Australia.
The land and buildings where Urbanstone operates were not sold as part of the deal; however, Brickworks has entered into a long-term leasing agreement with Schaffer for continued use of those facilities.
“The sale of Urbanstone follows the recent sale of the Archistone and Limestone assets to complete the divestment of the Building Products division,” Schaffer managing director John Schaffer said.
“This allows Schaffer to focus on its globally competitive automotive component leather business, Delta precast and its growing portfolio of property assets and investments.”
“However, most importantly the acquisition allows us to expand our premium product offering, in line with our strategy to invest in style and product leadership,” he said.
“With our design studios and displays across the country and our relationships with the architectural community, we are very well placed to integrate the Urbanstone range and deliver growth.”
The deal is expected to be completed by November 22.
Shares in Schaffer were unchanged at $8.90 at 11:30am.