Travis Perkins Selling its Plumbing & Heating Business

TRAVIS PERKINS plc today announced its selling its Plumbing & Heating distribution business to private equity firm H.I.G. Capital for £325 million. The transaction is expected to be completed within the next three months.

Alongside the recent demerger of Wickes, the sale of its £1bn revenue plumbing and heating business completes simplification plans first announced in December 2018. The company will use the proceeds of the sale to offer shareholders a 35 pence per share special dividend and a share buyback programme.

Nick Roberts, Chief Executive, said: “Today marks another important step on our journey to becoming a simplified Group, focused on our market leading trade businesses.

“Looking forward, the Group has a bright future as the leading provider of building products in the UK and we look forward to setting out our plans later in the summer to continue to drive growth.”

In the year ended 31 December 2020, the plumbing and heating business had an operating profit of £17.9m and a loss before tax of £1.7m. Gross assets at 31 December 2020 were £580 million.

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