Last checked at 2 Oct 2019 07:00
Grafton Group plc
Disposal of Plumbase
Grafton Group plc ("Grafton" or "the Group"), the international builders merchanting and DIY Group, announces that on 1 October 2019 it completed the disposal of Plumbase, its specialist UK plumbing and heating business, to Plumbing and Heating Investments Limited ("PHIL"), a UK company engaged in the distribution of plumbing and heating products, for an enterprise value of £66.75 million. After allowing for adjustments for debt-like items and working capital, net cash proceeds of £60.7m were received on completion.
Consistent with Grafton's recent corporate activity, including the acquisition of Polvo on 1 July 2019 for €131m and the agreement to sell the Group's Belgian operations, today's announcement follows a strategic review culminating in a decision to divest Plumbase. The disposal of Plumbase is in line with the Group's strategy of orientating towards higher returning businesses with good long-term growth prospects.
Plumbase generated sales of £257.8 million and operating profit of £6.0 million for the year ended 31 December 2018.
Gavin Slark, Chief Executive Officer of Grafton Group plc commented:
"The sale of Plumbase to PHIL secures future opportunities for Plumbase, its employees and other stakeholders as part of an enlarged specialist plumbing and heating business. This transaction represents a very positive outcome for Grafton and enables us to continue to focus our capital and resources on attractive growth opportunities that generate appropriate returns for our shareholders."
Grafton Group plc + 353 1 216 0600
Gavin Slark, Chief Executive Officer
David Arnold, Chief Financial Officer
Murray + 353 1 498 0300
Pat Walsh
MHP Communications + 44 20 3128 8778
Andrew Jaques/Rachel Mann
About Grafton
Grafton Group plc is an international distributor of building materials to trade customers and has leading regional or national positions in the merchanting markets in the UK, Ireland and the Netherlands. Grafton is also the market leader in the DIY retailing market in Ireland and is the largest manufacturer of dry mortar in the UK.
Grafton trades from circa 550 branches and has circa 12,300 colleagues. Its portfolio of brands include Selco, Buildbase, Leyland SDM, MacBlair and CPI EuroMix in the UK; Chadwicks, Heiton Buckley and Woodie's in Ireland and Isero, Polvo and Gunters en Meuser in the Netherlands.
In 2018, Grafton reported revenue of £2.95bn and adjusted operating profit of £194.5m.
For further information visit www.graftonplc.com