Cumbrian steel cladding specialists A Steadman & Son is set to be sold to building giant Kingspan as part of a £37.5 million deal.

The company, which has a facility in Welton near Carlisle, is part of SIG plc’s Building Solutions division, which, subject to conditions, is to be sold to Kingspan Holdings on a cash free, debt free basis.

The proposed sale, which followed a competitive process, is subject to a number of conditions – the most significant of which is completing the Competition and Markets Authority's clearance process.

SIG plc’s Steadmans, United Roofing Products, Trimform Products, and Advanced Cladding and Insulation brands are all part of the disposal.

A Steadman & Son – which can trace its roots back to 1911 – is a major supplier of steel cladding, galvanised roofing sections, composite wall and roof sheets and fibre cement sheeting to the agricultural and steel building sectors.

SIG plc said the proceeds of the sale would be used to reduce its debts, after the Sheffield headquartered company issues its second profit warning in as many months following a sharp deterioration in the UK and German construction markets.

Its Building Solutions division performed well in the year ending December 31, reporting revenues of £60m and an operating profit of £3.3m.

However, a strategic review undertaken in 2017, found that the division’s manufacturing focus and product offering was “very different” to SIG’s core business.

The decision to offload it was made to “refocus the group's portfolio and strengthen its balance sheet”, the company said.

SIG plc’s chief executive Meinie Oldersma, added: “This disposal, on attractive terms, is in line with SIG's medium-term strategy and completes the exit of peripheral, non-core businesses identified in our 2017 strategic review.”

Earlier this year, bosses at SIG plc confirmed that a “complete review” of operations on machinery had been undertaken at the A Steadman & Son factory after it was fined £600,000 for admitting a health and safety breach.

Machine operator Matthew Hook had to have four of his fingers partially amputated after his left hand was trapped in a machine on October 21, 2015.

SIG Plc – which was also ordered to pay more than £23,000 in court costs – said it was “very disappointed that the accident occurred”.