(Alliance News) - Travis Perkins PLC on Tuesday said it will pay a special dividend and buy back at least GBP100 million of shares, as the sale of its Plumbing & Heating business nears completion.
The Northampton-based building supplies retailer confirmed the special dividend worth 35 pence per share, for a total of GBP79 million. In addition, the firm will start a buyback programme with a first tranche of repurchases worth up to GBP100 million. "Any further tranches...will be announced in due course," the company said.
The payouts come after Travis Perkins agreed to sell Plumbing & Heating to HIG Capital for GBP325 million in cash. That deal is expected to complete by September 30, with the first tranche of buybacks starting on October 1 and running until March 24 at the latest.
In April, Travis Perkins spun off DIY-retailer Wickes Group PLC as as separately listed company.
In May, Travis had said it planned to pay a 35p-per-share special dividend and start a buyback programme, "subject to market conditions".
Shares in Travis Perkins were up 0.3% to 1,694.50p in London on Tuesday morning.
By Ivan Edwards; ivanedwards@alliancenews.com
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Travis Perkins (TPK)