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Travis Perkins to sell plumbing and heating business for £325m

The transaction is expected to be completed within the next three months and falls alongside the recent demerger of Wickes

Travis Perkins has announced that it has agreed to sell its plumbing and heating (P&H) distribution business to an affiliate of H.I.G. Capital for a cash consideration of £325m.

The transaction is expected to be completed within the next three months and falls alongside the recent demerger of Wickes, with the sale representing the completion of the group’s portfolio actions as outlined at the Capital Markets Day in December 2018.

The retailer intends to return the net proceeds of the disposal to shareholders following completion of the transaction through a combination of a 35p per share special dividend, as well as a share buyback programme.

Nick Roberts, chief executive, said: “A significant amount of work has gone into improving the P&H business over the last few years and I am sure that the business will continue to make excellent progress under the ownership of H.I.G.

“I would like to thank all of our colleagues in the P&H business for their commitment and hard work whilst part of the Travis Perkins Group, particularly during what has been an extremely challenging year, and I wish them all the best for the future.”

He added: “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.”

Morgan Stanley and Co. International plc is acting as financial advisor to Travis Perkins in relation to the transaction.

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