Huws Gray, the Anglesey-based private equity-funded independent builders merchant group, has today bought the Buildbase, Civils & Lintels, PDM Buildbase, The Timber Group, Bathroom Distribution Group, Frontline and NDI brands from Grafton Group plc.
In the year to 31 December 2020, the Business reported revenue of £828.2 million (2019: £1.02 billion) and adjusted operating profit of £18.8 million (2019: £33.3 million). Gross assets at 31 December 2020 were £497.2 million. Grafton will retain responsibility for the UK defined benefit pension scheme which was closed to future accrual at the end of 2020 when alternative arrangements were put in place.
The deal, which will have to be agreed by the Competition and Markets Authority, is for an enterprise value of £520 million. Grafton will retain freehold properties with development potential that have a market value of circa £25 million. This agreement follows the announcement in April 2021 of a strategic review of the business.
Grafton will continue to develop the Selco Builders Warehouse branch network and its other specialist distribution and manufacturing businesses in Great Britain that it has focussed on in recent years.
Gavin Slark, chief executive officer of Grafton said: “The divestment secures future opportunities for all stakeholders as part of an enlarged general merchanting business. I would like to thank all our colleagues in the Business for their longstanding contribution to Grafton and wish them every success in the future. This is an attractive outcome for Grafton and is in line with our strategy of deploying our capital resources towards higher growth potential businesses offering superior returns.”