Travis Perkins has agreed to sell its loss-making Toolstation Benelux business for €1, committing approximately £35m in additional capital to complete a withdrawal intended to simplify the group and concentrate resources on its UK operations.
The proposed buyer is Munich-based investment company Fidelium Partners, which specialises in acquiring established businesses undergoing restructuring and operational change.
The agreement will transfer Toolstation’s operations in the Netherlands and Belgium into independent ownership, with the existing management team remaining in place.
Completion is expected before the end of 2026, subject to the applicable works council consultation process in the Netherlands.
Travis Perkins will provide approximately £35m to strengthen the business’s financial position before the transfer, despite receiving only a nominal amount from the buyer.
The arrangement reflects the cost of exiting an underperforming operation rather than a transaction intended to generate immediate disposal proceeds.
Toolstation Benelux is expected to record an adjusted operating loss of approximately £10m for the current financial year.
Following the disposal agreement, Travis Perkins will classify the business as a discontinued operation in its 2026 accounts, excluding that expected loss from the group’s adjusted operating profit from continuing operations.
The accounting change will separate the Benelux results from the performance of the remaining businesses. It does not eliminate the financial cost of supporting the operation’s transition to new ownership.
Group concentrates resources on Britain —
The disposal follows a strategic review of Toolstation Benelux, which had struggled to establish sustainable profitability despite developing an established branch network and online operation.
The business operates more than 100 branches across the Netherlands and Belgium, supported by distribution infrastructure and an ecommerce platform.
Its customers include professional tradespeople and consumers purchasing products for home improvement.
Travis Perkins began examining options for the operation earlier in 2026, with management identifying its performance as a constraint on the group’s wider financial recovery.
The decision to sell forms part of a broader programme of corporate simplification under chief executive Gavin Slark.
Its remaining portfolio includes Travis Perkins Builders’ Merchants, Toolstation UK, Keyline, BSS, and CCF, alongside other specialist distribution businesses.
Slark said the proposed divestment would allow management to concentrate on the company’s principal UK operations while reducing the complexity of its international structure.
The group expects to redirect resources towards activities offering stronger prospects for profitable growth.
For a business seeking to improve financial performance, the transaction illustrates the trade-off between an immediate restructuring cost and the prospect of reducing recurring operating losses.
The £35m contribution represents a substantial commitment, but management expects the separation to remove an operation that has continued to weigh on the group’s adjusted results.
Independent ownership planned —
Fidelium intends to retain Toolstation Benelux’s existing leadership team, headed by managing director Phillip Mes.
The investor specialises in corporate carve-outs, acquiring businesses from larger groups and supporting them through changes in ownership and operating structure.
Its previous transactions have involved operations formerly owned by companies including Bosch and Panasonic.
Under the proposed arrangement, Toolstation Benelux will continue operating as a standalone company rather than being integrated into another trading business.
Fidelium plans to work with management on operational improvements, although the companies have not disclosed financial targets or a detailed timetable for returning the business to profitability.
The disposal remains conditional on the Dutch consultation process, and ownership has not yet transferred.
For Travis Perkins, the agreement represents a further step towards concentrating its portfolio on UK businesses, with the immediate financial commitment accompanying a reduction in exposure to future losses from Toolstation Benelux.
