Grafton Group Sells Plumbase

Grafton Group plc ("Grafton" or "the Group"), the international builders merchanting and DIY Group, announces that on 1 October 2019 it completed the disposal of Plumbase, its specialist UK plumbing and heating business, to Plumbing and Heating Investments Limited ("PHIL"), 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."

Source : Insight DIY Team and Grafton Group

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