Travis Perkins has sold its Plumbing & Heating business for £325m.

The sale of PTS is to a private equity group for £325m.

Investment firm HIG Capital will acquire the division on a debt-free, cash-free basis with the deal expected to be completed within the next three months.

The sale follows on from the demerger of Wickes in April 2021, Travis Perkins has now simplified its portfolio, strengthening the group’s balance sheet.

The sale is part of the group’s aim to slim down the business, as it first outlined in December 2018.

Chief executive Nick Roberts said: “Today marks another important step on our journey to becoming a simplified group, focused on our market-leading trade businesses. A significant amount of work has gone into improving the P&H business over the last few years and I am sure that the business will continue to make excellent progress under the ownership of HIG.”

Travis Perkins plans to use proceeds from the sale to pay a dividend to shareholders and carry out a share buyback programme.

A recent trading update from the business revealed demand from the domestic repair and maintenance market remained strong in the first quarter of the year. Commercial and new-build markets were “subdued”, but showed signs of recovering.

The builders’ merchant said the cost of raw materials, including timber, copper and steel, had increased “over and above” what it experienced in the second half of 2020.