Carrs Billington is to sell its agricultural supplies division for £44.5 million, the company has announced.
The Cumbria firm said the sale would enable it to focus other divisions, particularly speciality agriculture and engineering.
Both of these divisions provided a greater opportunity for growth, Carrs said, and historically have achieved higher profit margins.
The agricultural supplies division, which trades as Carrs Billington Agriculture, will be sold to Edward Billington and Son Ltd for £44.5m.
Peter Page, Carrs' executive chairman, said: “We are today setting out a clear strategy for growth in earnings and shareholder value.
"This proposed transaction will... provide funding for strategic growth and investment, thereby enabling us to build upon our industry leading positions in these two higher margin divisions."
Mr Page noted that Carrs Billington Agriculture had been a key part of the group’s growth and development over the past 20 years.
"We are confident that Edward Billington and Son, with its long-term commitment to the sector, is well placed to fulfil this role," he added.
"This transaction represents a compelling and immediate realisation of value for all of our shareholders, streamlines the business and provides the Board with a clear strategic direction for driving future growth.”
