Travis Perkins to sell off DIY chain Wickes amid a home improvements decline, with the standalone business set to be worth £650m
DIY chain Wickes is to be sold by Travis Perkins
DIY chain Wickes is to be sold by Travis Perkins amid a home improvements decline as the parent firm simplifies its business to focus on selling building materials to traders.
DIY chains such as Wickes and rival Homebase have struggled as fewer people move home. The demerger is expected to cost Travis Perkins £3.5 million in fees and IT costs.
Analysts predict Wickes could be worth around £650 million as a standalone business.
Wickes said: ‘Wickes will have the autonomy to execute on its strategy and allocate capital to its customer proposition and growth opportunities with a clearer focus.’
Travis Perkins posted a £12 million profit for the first six months of 2019, after a £148 million loss a year earlier. Sales jumped 6.9 per cent to £2.8 billion in the period.
The group hopes to save £30 million by next year. Northampton-based Travis Perkins first employed joiners and carpenters in 1797.
The group also owns Toolstation and building materials supplier Keyline. Shares rose 3.2 per cent, or 42.5p, to 1366p.