New owner for Plumbase stores

Builders merchanting and DIY group Grafton Group has announced completing the disposal of Plumbase to Plumbing and Heating Investments for £66.75m.

After allowing for adjustments for debt-like items and working capital, net cash proceeds of £60.7m were received on completion, a statement said.

Grafton said its decision to divest Plumbase was in line with a group strategy of orientating towards “higher returning businesses with good long-term growth prospects”.

Plumbase generated sales of £257.8 million and operating profit of £6.0 million last year.

Gavin Slark, chief executive officer of Grafton Group, said: “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. 

“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.