LONDON (Alliance News) - Grainger PLC on Monday said it has struck a deal with Turbo Group Holdings Ltd to sell its Equity Release division for a total consideration of GBP325.0 million, including debt.
Grainger said the sale of its retirement products unit to Turbo, owned by Patron Capital Partners and FTSE 250-listed Electra Private Equity PLC, will allow it to focus on its residential lettings business, following the sale of its wholly-owned and joint venture assets in Germany.
The sale consideration will include GBP175.0 million in cash and the transfer of GBP150.0 million in debt to the buyer and will cut Grainger's net debt position by an estimated GBP325.0 million.
The company expects to make a profit of around GBP55.0 million on the sale, which should be completed by the end of May, subject to Turbo securing approval from the Financial Conduct Authority, the UK financial sector regulator.
"This is an important transaction for Grainger. It accelerates the transition to a business focused on the residential rented sector and will simplify the group. It will materially reduce our financial and operational costs, including costs associated with running a FCA regulated business, and will significantly strengthen our balance sheet and capacity for investment," said Helen Gordon, Grainger's chief executive.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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