Shares of GWA Group Limited [ASX:GWA] are trading at $3.33 at the time of writing, up 2.77% in today’s market.
GWA share price increase upon completed sale.
GWA’s recent media release detailed it had successfully completed the sale of its Door & Access systems business to Allegion (Australia) Pty Ltd. This could be a contributing factor to the rising share price.
The purchase price of $107 million includes a payment of $102 million at completion, as well as a contingent payment of $5 million. However, this is dependent on whether transitional arrangements post-completion are met.
GWA managing director Tim Salt said he was pleased with the outcome:
‘The sale enables our strategic focus on superior solutions for water within our Bathrooms & Kitchens business where we have strong market positons, market-leading brands and where we have identified significant growth opportunities.’
He also stated:
‘On behalf of GWA, I wish to thank our former colleagues in the Door & Access Systems business for their dedication and effort under GWA ownership and wish them every future success under the new ownership of Allegion.’
GWA future prospects
The board of GWA has reviewed options about the use of net proceeds from the sale, including the investment in Bathrooms & Kitchens’ growth strategy.
So investors can look forward to potential growth after the growth strategy.
For Money Morning