Building materials distributor Grafton Group has confirmed that it has completed the divestment of its traditional merchanting business in the UK.
The group announced the business sale to builder merchant Huws Gray in July for an enterprise value of £520 million.
Huws Gray is one of the UK’s largest independent builders’ merchants and is controlled by equity funds managed by Blackstone.
Grafton, which owns Woodies DIY and Chadwicks here, confirmed the deal following a strategic review of the business, which commenced in April.
Grafton’s UK traditional merchanting business comprises the Buildbase, Civils & Lintels, PDM Buildbase, The Timber Group, Bathroom Distribution Group, Frontline, and NDI brands.
In December 2020, it reported revenue of £828.2 million and an adjusted operating profit of £18.8 million.
At the time of the deal’s announcement, Grafton said that it would continue to develop its Selco Builders Warehouse branch network and its other specialist distribution and manufacturing businesses in the UK.
The group added that it also enables Grafton to focus on its international development strategy, which will be a key priority over the coming years.