Building materials group Caradon has sold its plumbing division to the private equity arm of banking giant HSBC in a £442 million cash deal.

Caradon - whose products include Mira showers, Stelrad and Henrad radiators, and Twyford bathrooms - said it would adopt the name of its US subsidiary Novar after the disposal of its plumbing business.

Chief executive Jurgen Hintz said: "This disposal marks a milestone in the transformation of the group, from low growth industrial businesses into higher growth markets with significant technology and customer solutions dimensions."

In August Caradon said its streamlining efforts were paying off as it unveiled an upturn in half year pre-tax profits for the six months to July.

It made £71.1 million, compared with £56.7 million in the opening half of 1999.Caradon said it had taken "significant" steps to achieving the transformation of its business and said a series of acquisitions would help it to remain competitive in attractive markets.

It also said the sale of its plumbing businesses would provide the financial resources for it to make further strategic acquisitions.

Following the streamlining, Novar will comprise of three divisions: providing cabling systems; secure printing services, mainly for banks; and making aluminium products.

However, HSBC will be able to continue to use the Caradon name in plumbing markets.

In the year to October 1999 the Weybridge, Surrey-based company turned over £1.39 billion, making a pre-tax profit of £25.6 million, of which the plumbing division contributed less than a quarter.Caradon's market capitalisation is in the region of £435 million.