2nd Oct 2019 09:03
(Alliance News) - Grafton Group PLC said Wednesday it has sold its specialist UK plumbing and heating business Plumbase, to Plumbing & Heating Investments Ltd for an enterprise value of GBP66.8 million.
Following adjustments for debt-like items and working capital, the FTSE 250 builders merchanting and DIY group made net proceeds of GBP60.7 million.
The sale of Plumbase is in line with Grafton's strategy of orientating towards higher returning businesses with good long-term growth prospects.
For 2018, Plumbase made an operating profit of GBP6.0 million, on sales of GBP257.8 million.
"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 shareholder," said Grafton Chief Executive Officer Gavin Slark.
Shares in Grafton were up 0.1% at 773.0 pence on Wednesday in London.
By Dayo Laniyan; [email protected]
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