CSR has confirmed the sale of its troubled Viridian Glass business for $155 million, although the total price tag looks set to rise.
The construction material supplier says the sale of Viridian and a site at Dendenong to Crescent Capital Partners is expected to be completed by February 2019.
Crescent will pay $155 million in cash and lease Viridian’s Ingleburn property in NSW.
CSR plans to sell that property after the Crescent deal is completed, bringing in another $60 million.
‘This transaction will enable Viridian to align its footprint and cost structure to operate more effectively as a standalone business,’ CSR managing director Rob Sindel said in a statement.
CSR had flagged Viridian for a potential sale earlier this year and this month reported a 77 per cent fall in half-year profit on the back of nearly $76 million in impairments to the glass business.
Following sale of all Viridian assets, CSR expects a pre-tax full-year loss of between $20 million and $30 million for the 12 months to March 31.
CSR shares were valued at $2.96 before the start of trade on Wednesday, down 48 per cent from May’s 10-year high of $5.74.