USA
Our US business grew revenue 8.3% on an organic basis, which included price inflation of about 1%, and acquisitions contributed a further 2.0%. All businesses generated good organic growth in the quarter, with residential markets continuing to grow well, commercial markets growing reasonably and industrial markets continuing to improve.
We improved our gross margins and operating expense growth was well controlled. Trading profit of $363 million (2017: $318 million) was 14.2% ahead of last year.
Two acquisitions, AC Wholesalers and Supply.com, were completed during the quarter with total annualised revenue of $113 million.
UK
Organic revenue growth was 3.2% in the quarter principally as a result of price inflation. Gross margins were lower in competitive markets as customers resisted supplier price rises. Repair, maintenance and improvement markets remained weak. Trading profit of $21 million was 3.8% lower than last year at constant exchange rates.
The transformation programme continues to be on track and we are working to increase the pace of execution to lower the cost base of the business.
Canada and Central Europe
Canada and Central Europe organic revenue grew by 7.7% with acquisitions contributing 1.5% of additional growth. All businesses grew organic revenue with markets growing well. Gross margins were ahead of last year and operating costs well controlled. Trading profit of $24 million was $5 million ahead of last year including $1 million from favourable exchange rate movements.
Three acquisitions, Aircovent in the Netherlands and Plomberium Pierrefonds and Tackaberry in Canada, were completed in the first quarter with total annualised revenue of $30 million.
Discontinued operations
As announced on 10 November 2017 we have entered into an agreement to sell Stark Group, our Nordics building materials distribution business, to an affiliate of Lone Star Funds, a global private equity firm, for €1,025 million on a debt-free and cash-free basis. Transaction and other costs relating to the disposal are expected to be in the region of €50 million. Net assets of the business being disposed are approximately €500 million. We have retained approximately €150 million of property assets which we expect to sell in due course.
The transaction is conditional on the receipt of merger clearance from the relevant competition authorities. Subject to satisfaction of this condition, we expect the transaction to complete early in 2018. Following completion of the transaction we will, in the normal course of events, update the market on the Group's asset allocation plans including the utilisation of excess cash.
Revenue for the Nordic business was $752 million (2017: $749 million) and trading profit was $41 million (2017: $30 million) in the 3 months to 31 October 2017.
Financial position
Net debt at 31 October 2017 was $790 million (31 October 2016: $1,431 million) after purchasing 1.8 million shares for £95 million ($125 million) in accordance with the £500 million share buyback programme announced at the full year results on 3 October 2017. Total acquisition consideration in the quarter was $109 million.
On 30 November 2017, we successfully issued $450 million of 6, 7 and 9 year term debt in the US Private Placement market. The final dividend of $240 million was paid to shareholders on 1 December 2017. There have been no other significant changes to the financial position of the Group.
Outlook
Since the end of the quarter organic revenue growth has been broadly in line with the first quarter. The Group expects trading profit for the full year to be in line with current analyst consensus expectations.