H.I.G. Capital LLC, a global alternative investment firm, has, through one of its affiliates, signed a definitive agreement to acquire Travis Perkins Plc’s plumbing and heating business, a UK plumbing, heating, and bathroom related products specialist merchants. The divestiture is valued at approximately $485 million (£325 million), and the transaction is expected to be completed within the next three months, following regulatory approval.
Dave Evans, CEO of P&H said, “The sale to H.I.G. is great news for P&H and its stakeholders. We are recognised as a market leader across many of our businesses and the categories they operate in and I am very excited to work with the team at H.I.G. to capitalise on the enormous potential for growth we have within the UK and Ireland. We are well positioned to push forward with our plans for growth by developing more customer-focused propositions delivered by over 3,000 dedicated team members. I look forward to building an even stronger business in the coming years.”
Markus Noe-Nordberg, managing director and head of the H.I.G. European Middle Market LBO team,commented, “We are thrilled to welcome the plumbing and heating business from Travis Perkins into the H.I.G. family. H.I.G. has had great success investing in speciality distribution assets, and we will use this experience to support management in maximizing the company’s potential. This transaction is an ideal fit with our investment mandate and once more underscores H.I.G.’s ability to execute on complex transactions such as carve-outs.”
Tobias Borkowski, principal at H.I.G. Europe, added: “We believe that the Company, as a freestanding enterprise, can better serve the individual needs of its customers, and rapidly expand its trusted relationships with suppliers. We are excited to partner with Dave and his entire team and look forward to supporting the Company’s continued growth.”
Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal counsel to H.I.G. Capital. Morgan Stanley is acting as financial advisor and Linklaters LLP as legal counsel to Travis Perkins Plc.