Grafton Group plc has announced that it has completed the sale of Plumbase to Plumbing and Heating Investments Ltd for an enterprise value of £66.75 million.
After allowing for adjustments for debt-like items and working capital, net cash proceeds of £60.7 million were received on completion.
What group calls "the disposal of Plumbase" is in line with the group’s strategy of focusing on higher returning businesses with good long-term growth prospects.
This is consistent with Grafton’s recent acquisition of Polvo in July 2019 for €131 million and the agreement to sell the group’s Belgian operations.
Plumbase generated sales of £257.8 million and operating profit of £6.0 million for the year ended 31 December 2018.
Gavin Slark, CEO of Grafton commented: “The sale of Plumbase secures future opportunities for Plumbase, its employees and other stakeholders as part of an enlarged specialist plumbing and heating business.”