Owens Corning sells 2 European plants for $242M

Owens Corning, a producer of residential and commercial building materials, said Thursday it has completed the sale of two composite manufacturing plants in Europe to Platinum Equity for $242 million (155 million euros).

The facilities are located in Battice, Belgium, and Birkeland, Norway.

After acquisition-related costs, Owens Corning expects proceeds to total about $197 million, including $184 million in cash plus the assumption of certain liabilities by the buyer.

As a result, Owens Corning booked a first-quarter impairment charge of about $10 million.

Owens Corning agreed to sell the facilities to address regulatory concerns associated with its $640 million purchase of the glass reinforcement and composite materials business of French glass company Compagnie de Saint Gobain. That acquisition was completed on Nov. 1, 2007.

The transaction also includes the transfer of some assets related to the operation of the facilities, including intellectual property rights and precious metals used in production tooling.