Grafton Group PLC has announced the sale of its specialist UK plumbing and heating business Plumbase to Plumbing & Heating Investments Ltd (PHIL) for a net £60.7million.
Following the announcement, shares in Grafton Group fell by 2%.
In 2018, Plumbase generated sales of £257.8 million and an operating profit of £6million. The sale reflects the Group’s strategy to align the business with higher returning enterprises with good long-term growth prospects.
“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,” said Grafton CEO Gavin Slark.
“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 shareholder.”
