WIX

Britain's Travis Perkins to return cash to shareholders after plumbing exit

Credit: REUTERS/Neil Hall

Travis Perkins, Britain's biggest seller of building materials, will return cash to shareholders after selling its plumbing and heating business to an affiliate of investment firm H.I.G. Capital for 325 million pounds ($461 million).

Adds detail

LONDON, May 21 (Reuters) - Travis Perkins TPK.L, Britain's biggest seller of building materials, will return cash to shareholders after selling its plumbing and heating business to an affiliate of investment firm H.I.G. Capital for 325 million pounds ($461 million).

The group said on Friday it would return the net proceeds to shareholders through a combination of a 35 pence per share special dividend and a share buyback programme.

It said that alongside last month's demerger of its Wickes WIX.L home improvement business, the sale of plumbing and heating represents the completion of its plan to reduce the size of its portfolio, first outlined in 2018.

The deal is expected to be completed within the next three months.

"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," said Travis Perkins CEO Nick Roberts.

Shares in Travis Perkins closed Thursday at 1,616 pence, valuing the group at 3.6 billion pounds.

($1 = 0.7043 pounds)

(Reporting by James Davey; editing by Guy Faulconbridge and David Evans)

((james.davey@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

WIX

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More