Travis Perkins plc has announced the sale of its Plumbing & Heating (P&H) distribution business to an affiliate of alternative investment firm H.I.G. Capital for a cash consideration of £325million.

The sale will be on a debt-free, cash-free basis, subject to customary adjustments and the transaction is expected to be completed within the next three months.

In the year ended 31 December 2020, P&H generated revenue of £1,041 million, adjusted operating profit of £17.9 million and a loss before tax of £1.7m. Gross assets at 31 December 2020 were £580 million.

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Headquartered in Northamptonshire, the plumbing and heating division features nine businesses, including City Plumbing and Plumbing Trade Supplies (PTS).

It employs over 4500 staff members across more than 370 branches and sites in the UK and Ireland.

The sale follows on from the recent demerger of Wickes, both of which complete the Group’s portfolio actions outlined at the Capital Markets Day in December 2018.

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

“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.

Following on from the demerger of Wickes in April 2021, the Group has now executed the planned actions to simplify its portfolio and the strength of the Group’s balance sheet enables us to return the net proceeds to shareholders.

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