Shares in Ibstock (IBST) jumped by as much as 10 per cent after the brick manufacturer announced the sale of its US manufacturing business Glen-Gery for $110m (£86m). The new owner, Brickworks, will also assume pension liabilities.
IC TIP:
Buy
at
238p
The proceeds from the sale will be used to pay down debt, and together with strong cash flow is expected to reduce debt to around £50m by the end of 2018. The group revealed that, following a strategic review, the US business was not in line with its overall strategic objectives, and the intention now is to refocus the business model on its core markets in the UK.
