Global private equity firm, Aurelius, has agreed to purchase a supplier of maintenance, repair and operating (MRO) products to the UK construction industry, with revenue of more than £230 million.
The deal to acquire Leicester-headquartered Cromwell, founded in 1970, coincides with its American parent company, Grainger (NYSE: GWW), announcing its withdrawal from the UK market.
In a company statement, issued today (17 October), Grainger said the deal with Aurelius is part of a decade-long review of its portfolio of operations.
In September, Grainger also announced the proposed closure of its Zoro UK business, subject regulatory approval.
Cromwell began trading more than 50 years ago as a local tool supplier and is today one of the largest independent MRO distributors in the UK.
The firm was acquired by Grainger in 2015 for £310 million.
Grainger will begin to focus its investments more keenly on North America and Japan, where it believes it will deliver the “greatest long-term impact”.
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To account for the sale of Cromwell to Aurelius and its exit from the UK market, Grainger will record a one-time, non-cash after-tax loss in the range of $190 million to $205 million, in Q3 2025.
Last year, Grainger reported revenues of $17.2 billion.
The deal, which is subject to regulatory approval, is expected to complete in the coming months.
“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. With this, we’ve altered our assumptions about our future potential in this region,” said D.G. Macpherson, chairman and CEO of Grainger.
Adding: “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.”
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