Ferguson plc is pleased to announce that it has today entered into an agreement to sell Stark Group, its Nordics building materials distribution business, to an affiliate of Lone Star Funds, a global private equity firm, for €1,025 million on a debt-free and cash-free basis. Transaction and other costs relating to the disposal are expected to be in the region of €50 million. Net assets of the business being disposed are approximately €500 million. Ferguson has retained approximately €150 million of property assets which we expect to sell in due course.

In the year ended 31 July 2017, Stark Group generated ongoing revenue of €2,151 million and an ongoing trading profit of €65 million. Gross assets at 31 July 2017 were €1,153 million.

The transaction is conditional on the receipt of merger clearance from the relevant competition authorities. Subject to satisfaction of this condition, we expect the transaction to complete early in 2018.

Following completion of the transaction we will, in the normal course of events, update the market on the Group's asset allocation plans including the utilisation of excess cash.

John Martin, Chief Executive of Ferguson, commented:

'The sale of Stark Group will secure an excellent future for our people and will continue to ensure that customers' needs are met. The transaction represents a good outcome for Ferguson shareholders and will enable us to continue to focus on our strategy of accelerating profitable growth in our plumbing and heating businesses.'

Ferguson plc published this content on 10 November 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 10 November 2017 07:48:02 UTC.

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