1st Jul 2021 13:54
(Alliance News) - Grafton Group PLC on Thursday announced it is selling its traditional merchanting business in the UK for GBP520 million to builders merchants Huws Gray.
Shares in the Dublin-based DIY retailer rose 4.6% to 1,200.00 pence in London on Thursday afternoon.
The unit to be sold includes Grafton's Buildbase, the Timber Group and NDI brands among others. In financial year 2020 the divested business reported adjusted operating profit of GBP18.8 million on revenue of GBP828.2 million.
"The divestment secures future opportunities for all stakeholders as part of an enlarged general merchanting business," commented Chief Executive Gavin Slark.
"This is an attractive outcome for Grafton and is in line with our strategy of deploying our capital resources towards higher growth potential businesses offering superior returns."
The divestment is expected to be completed by the end of the first quarter of 2022. The deal would help enable Grafton to focus on international expansion in the coming years, it noted.
By Will Paige; [email protected]
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