Woodie's owner is reviewing its British businesses

Grafton Group is looking again at its UK merchanting offer — possibly with a view to a sell-off worth up to £400m

The owner of Woodie's DIY chain, Grafton Group, is undertaking a strategic review of its retail offering — but the Irish chain is not among the businesses being assessed. Picture: Eddie O'Hare

The Grafton Group, which owns Woodie's, said it will review some of its traditional merchanting businesses in Britain.

The company said the review, focused on six of its businesses — including Buildbase and Civils & Lintels — may or may not result in the sale of some or all of these businesses. 

Liberum analysts estimate the businesses to have revenue of about £1bn (€1.15bn) and that a sale might bring in around £300m (€346m) to £400m (€461m) with private equity a more likely buyer. The review does not include Woodie's.

Part of group is 'challenged'

"This news backs up our thesis that this part of the group is challenged," the analysts said.

Apart from Buildbase and Civils & Lintels, Grafton said the strategic review will include PDM Buildbase, The Timber Group, Bathroom Distribution Group, and NDI businesses.  No other businesses form part of the strategic review, according to the company.

Grafton said in February it remained cautious about first-half revenue trends given continuing uncertainty from the Covid-19 pandemic. The company reported then that annual revenue and adjusted operating profit for 2020 fell about 6% each.

• Reuters