(Alliance News) - FTSE 250-listed Travis Perkins PLC on Monday confirmed the sale of its wholesale plumbing & heating business, Primaflow F&P, to Newbury Investments UK Ltd for GBP46 million.
For 2018, Primaflow F&P generated profit after adjusting items of GBP5 million. Gross assets amounted to GBP102 million as at the end of June 2019.
The move is a part of Travis Perkins' strategy to simplify the company and to focus on its advantaged trade businesses.
The transaction is expected to be completed at the end of January and the proceeds will be used to reduce the home improvement retailer's net debt.
"The divestment of our wholesale plumbing & heating business is a further step in reducing the group's overall complexity and enabling greater focus and more disciplined capital allocation to our advantaged trade-focused businesses," explained Chief Executive Nick Roberts.
Travis Perkins shares were trading 1.3% higher in London on Monday at 1,588.50 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Travis Perkins (TPK)