Industrial supplies distributor Grainger said Friday it has agreed to sell its United Kingdom–based Cromwell business to private equity firm Aurelius, marking another step in its withdrawal from the U.K. market.
The move follows the company’s plan, announced in September, to close its Zoro U.K. operation, which remains subject to consultation and regulatory approval.
Grainger, formally known as W.W. Grainger Inc., said the sale to Aurelius reflects its decision to concentrate on regions where it sees the most long-term potential for growth and profitability. “Over the past decade we’ve made a concerted effort to focus our portfolio on the geographies where we can deliver the greatest long-term impact,” said chief executive D.G. Macpherson. “We remain committed to creating value for our customers and driving profitable growth through our High-Touch Solutions model in North America and our Endless Assortment businesses in the United States and Japan.”
To account for the divestiture, Grainger expects to record a one-time, non-cash after-tax loss of $190 million to $205 million, most of which will appear in its third-quarter 2025 results. The transaction is subject to customary regulatory approvals and is expected to close in the coming months.
The sale underscores Grainger’s continued focus on its North American and Asian operations, where it has been investing in digital platforms and supply-chain capabilities. In contrast, the U.K. market has presented limited opportunities for expansion amid rising operating costs and competitive pressures.
Aurelius, based in Munich, is known for acquiring corporate carve-outs and underperforming divisions with the goal of restructuring them into stand-alone entities. Details of the sale price were not disclosed.
Grainger acquired Cromwell in 2015 for £310 million ($US 378 million). Cromwell, which supplies maintenance, repair, and operations products to industrial and institutional customers, operates more than 60 branches across the U.K. and employs about 1,800 people.
The company’s decision to close Zoro U.K. and sell Cromwell effectively ends its direct operations in Britain. Grainger said it remains focused on its core markets, where its mix of direct sales, digital platforms, and endless-assortment marketplaces has produced stronger margins and growth opportunities than its U.K. operations.
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