REG-Travis Perkins Travis Perkins plc - Disposal of Plumbing & Heating business

Travis PerkinsAnnouncement

20/05/2021 20:30

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   Travis Perkins (TPK)
   Travis Perkins plc - Disposal of Plumbing & Heating business

   20-May-2021 / 20:26 GMT/BST
   Dissemination of a Regulatory Announcement that contains inside information
   according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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                                   21 May 2021

    

                               Travis Perkins plc

                                         

                     Disposal of Plumbing & Heating business

    

   Travis Perkins plc today announces the disposal of its Plumbing & Heating
   distribution business ("P&H") to an affiliate of H.I.G. Capital, a leading
   global alternative investment firm, for cash consideration of £325 million,
   on a debt-free, cash-free basis and subject to customary adjustments.  The
   transaction is expected to be completed within the next three months.

    

   Alongside the recent demerger of Wickes, the sale of P&H represents the
   completion of the Group's portfolio actions as outlined at the Capital
   Markets Day in December 2018.

    

   Given the Group's strong balance sheet and robust liquidity position,
   Travis Perkins intends to return the net proceeds of the disposal to
   shareholders following completion of the transaction through a combination
   of a 35 pence per share special dividend and, subject to market conditions,
   a share buyback programme.

    

   Nick Roberts, Chief Executive, 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."

    

   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.

    

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

    

   *Including property profits of £1.4m

    

   Enquiries:

   Travis Perkins                          Powerscourt
   Matt Worster                            Justin Griffiths / James White
   +44 (0) 7990 088548                     +44 (0) 207 2501446
   matt.worster@travisperkins.co.uk        travisperkins@powerscourt-group.com
                                            
   Heinrich Richter                         
   +44 (0) 7392 125417                      
   heinrich.richter2@travisperkins.co.uk    

    

   About Travis Perkins

   Travis Perkins plc is the UK's leading supplier of materials and equipment
   to the building, construction and home improvement markets, and operates
   market leading businesses, including Travis Perkins Builders' Merchants,
   Toolstation and three specialist merchants in the civils, heating and
   interiors markets, Keyline, BSS, and CCF. With annual revenues of over £4
   billion, the Group employs over 16,000 colleagues across the UK, but also
   in France and Benelux through Toolstation. The company has a proud heritage
   that spans over 200 years.

   Travis Perkins plc is listed on the London Stock Exchange (LSE: TPK) and is
   in the FTSE 250 index of listed companies. For more information please
   visit  1 www.travisperkinsplc.co.uk

    

   About H.I.G. Capital

   H.I.G. is a leading global private equity and alternative assets investment
   firm with over  €36 billion of  equity capital under  management. Based  in
   Miami, and with offices in New York, Boston, Chicago, Dallas, Los  Angeles,
   San Francisco, and Atlanta in the U.S., as well as international  affiliate
   offices in London, Hamburg,  Madrid, Milan, Paris,  Bogotá, Rio de  Janeiro
   and São Paulo, H.I.G. specializes in providing both debt and equity capital
   to small and  mid-sized companies, utilizing  a flexible and  operationally
   focused /  value-added approach.  Since its  founding in  1993, H.I.G.  has
   invested in  and managed  more  than 300  companies worldwide.  The  firm's
   current portfolio includes more than  100 companies with combined sales  in
   excess of €27  billion. For more  information, please refer  to the  H.I.G.
   website at www.higcapital.com

    

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   ISIN:           GB00BK9RKT01
   Category Code:  DIS
   TIDM:           TPK
   LEI Code:       2138001I27OUBAF22K83
   OAM Categories: 2.2. Inside information
   Sequence No.:   106485
   EQS News ID:    1199123


    
   End of Announcement EQS News Service

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