Grafton Group PLC (LON:GFTU) said it appointed advisor Rothschild & Co to undertake a review of some of its traditional merchanting businesses in the UK.
The building materials distributor and DIY retailer said it may result in the sale of some or all of these subsidiaries.
The review will focus on Buildbase, Civils & Lintels, PDM Buildbase, The Timber Group, Bathroom Distribution Group and NDI businesses.
In the final results published in February, the FTSE 250 group said UK trading had been hit by the pandemic even though construction activity has continued during lockdown.
“The UK housing RMI market benefitted in 2020 from pent-up demand, home working and reduced spending on travel, leisure and hospitality,” the firm said.
“We believe that this trend is likely to continue in the coming months given the phased exit from lockdown with longer-term demand driven by broader economic fundamentals. The recovery in housebuilding is expected to continue, supported by strong underlying demand, but will remain sensitive to the confidence of households to make long-term commitments of this nature and in particular the availability of mortgage finance to first time buyers.”