Grafton Group plc (LON: GFTU), the international builders merchanting and DIY Group, announced today that on the 1st October 2019 it completed the disposal of Plumbase, its specialist UK plumbing and heating business, to Plumbing and Heating Investments Limited, a UK company engaged in the distribution of plumbing and heating products, for an enterprise value of £66.75 million. After allowing for adjustments for debt-like items and working capital, net cash proceeds of £60.7m were received on completion.
Consistent with Grafton’s recent corporate activity, including the acquisition of Polvo on 1 July 2019 for €131m and the agreement to sell the Group’s Belgian operations, today’s announcement follows a strategic review culminating in a decision to divest Plumbase. The disposal of Plumbase is in line with the Group’s strategy of orientating towards higher returning businesses with good long-term growth prospects.
Plumbase generated sales of £257.8 million and operating profit of £6.0 million for the year ended 31 December 2018.
Gavin Slark, Chief Executive Officer of Grafton Group plc commented:
“The sale of Plumbase to PHIL secures future opportunities for Plumbase, its employees and other stakeholders as part of an enlarged specialist plumbing and heating business. This transaction represents a very positive outcome for Grafton and enables us to continue to focus our capital and resources on attractive growth opportunities that generate appropriate returns for our shareholders.”
