(Alliance News) - Travis Perkins PLC on Thursday said it is to sell its plumbing and heating distribution unit, with the builders' merchant planning to give the proceeds to its shareholders.
HIG Capital will buy the unit for GBP325 million. The deal is expected to close in the next three months. The sale follows the company's separation of its Wickes Group PLC DIY retailing arm, which it sealed in April.
"Alongside the recent demerger of Wickes, the sale of P&H represents the completion of the group's portfolio actions as outlined at the Capital Markets Day in December 2018," Travis said.
Travis said it will return the sales cash to its shareholders, through a 35 pence per share special payout and a buyback programme.
Shares in the company closed up 1.0% at 1,619.35p each in London on Thursday.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Travis Perkins (TPK)
Wickes Group P. (WIX)