- Building materials supplier Grafton said it had entered into an agreement to sell its traditional merchanting business in the UK for an enterprise value of £520 million to Huws Gray.

The business sold comprised of the Buildbase, Civils & Lintels, PDM Buildbase, The Timber Group, Bathroom Distribution Group, Frontline and NDI brands.

Under the deal, Grafton would 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, with the company focused on developing its Selco Builders Warehouse branch network and its other specialist distribution and manufacturing businesses in the UK.

'Following completion in 2022, the group will in the normal course of events update shareholders and the market on the use of the proceeds from the divestment which will be receivable in full in cash on completion,' the company said.

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