Builders merchanting and DIY group Grafton said today that it had completed the sale of Plumbase, its UK plumbing and heating business.
Grafton sold Plumbase to UK company Plumbing and Heating Investments for an enterprise value of £66.75m.
After allowing for adjustments for debt like items and working capital, Grafton said that cash proceeds of £60.7m were received on completion of the deal.
Grafton said the sale of Plumbase was in line with its group strategy of orientating towards higher returning businesses with good long-term growth prospects.
Plumbase reported sales of £257.8m and operating profits of £6.0m for 2018.
Gavin Slark, chief executive of Grafton Group, said the sale 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," Mr Slark added.
