Ferguson

Announces sale of Nordics division for €1,025m

  • Sectors : Builders Merchants
  • Companies : Ferguson

DAVY VIEW

Ferguson has announced the expected sale of its Nordics division to Lone Star Funds for a consideration of €1,025m. On a trailing basis, it has therefore achieved an impressive multiple of 15.7x, albeit trading profits in the business have declined quite markedly in recent years. More importantly, the consideration on a per share basis represents over 6% of the current share price. Given current capital allocation priorities at the group, we would not be surprised if much of this excess cash is returned to shareholders (in addition to the current share buyback programme).

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Nov 10 2017, 09:15 GMT

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