Travis Perkins (LSE:TPK) has agreed to sell its loss-making Toolstation Benelux business to Fidelium Partners for cash consideration of €1.
The group, the UK's largest distributor of building materials, will inject a final £35m to strengthen Toolstation Benelux's finances as it moves to independent ownership, with completion expected before the end of the year, subject to a works council consultation process in the Netherlands.
Toolstation Benelux has weighed on the group's performance for some time; at the half-year to 30 June, it remained loss-making while management was already in discussions with multiple parties over a possible divestment, and first-quarter like-for-like revenue there had fallen 7.1%, against growth of 2.6% at Toolstation UK over the same period.
The business will now be reported as a discontinued operation in the FY26 accounts, with its expected full-year loss of approximately £10m excluded from the group's adjusted operating profit, a move management says will support the return to profit growth and free up resources for more value-creating activity.
"The proposed divestment of Toolstation Benelux represents further progress in simplifying the Group's operating model and supports our clear focus on being the UK's leading distributor of building materials," said chief executive Gavin Slark.
The disposal follows the 2025 sale of Staircraft, continuing a pattern of portfolio simplification as Travis Perkins concentrates on rebuilding merchanting margins and Toolstation UK's profitable growth.
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