Engineering support services group Redhall has sold its engineering contracting subsidiary RESL to Cape for a headline consideration of £6.0m.
Wakefield-based Redhall said net debt will fall £5m following the sale.
The loss on disposal in respect of goodwill will be £5.2m.
Redhall said the disposal is a significant step in its mission to reduce exposure to contracting, focusing the business on higher margin manufacturing activities and improving working capital.
RESL, which provides a wide range of engineering contracting services to process industries, contributed £30.1m of revenue to the group and an operating loss after exceptional items of £490,000 in the year to September 30.