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Travis Perkins has agreed to sell its Toolstation Benelux business to Fidelium Partners, in a deal that will see the builders' merchant pay to exit the loss-making operation. Under the terms announced on 10 November, the buyer will pay one euro for the business, while Travis Perkins will inject £35 million of cash to support it under new ownership. The sale marks the end of Travis Perkins' attempt to build a Toolstation business in the Benelux countries of Belgium, the Netherlands and Luxembourg.
Toolstation Benelux has struggled to make money, with sales falling 3.8 percent in the third quarter and like-for-like sales down 4.7 percent. The business has faced tough competition and weak demand in the region, and Travis Perkins decided that the best course was to exit rather than continue to invest in turning it around. By contrast, Toolstation in the UK performed better in the same quarter, with total revenue up 3.7 percent and like-for-like sales up 3.6 percent.
For Travis Perkins, the sale is part of a wider effort to focus on its core UK merchanting business, which supplies building materials to tradespeople and construction firms. The group has been working to simplify its portfolio and to improve returns, after a difficult period in which demand for building materials has been subdued. Selling a loss-making overseas business allows it to concentrate management time and capital on the parts of the group that make money.
The deal structure, with a nominal price of one euro and a cash injection from the seller, is not unusual when a business is loss-making and needs investment to survive. Fidelium Partners, the buyer, will take on the stores, staff and operations in the Benelux region, and will be responsible for funding the business going forward. Travis Perkins said the £35 million payment would be made as part of the transaction, and that the sale would remove a drag on its results.
For the wider building materials market, the sale shows how tough trading conditions have become for suppliers. Demand for home improvements and new building has been weak, and merchants are under pressure from higher costs and from competition. Travis Perkins will give more detail on its strategy when it reports its preliminary results in March 2027, when investors will look for signs that the core business is starting to recover.
Source: The Market Reporter
