Plumbing and heating giant Ferguson has agreed to sell its Wolseley business in the UK to a private investment firm Clayton, Dubilier & Rice for about £308 million (€341.4m), allowing the group to focus solely on its main US business.
The sale of the Wolseley brand had been expected to fetch about £500 million pounds, according to a Bloomberg report in November.
The FTSE 100 company had said last year the timing of its demerger process was uncertain due to the Covid-19 pandemic, and it was considering other options to exit the unit, including a potential separate stock market listing.
Wolseley sells plumbing, heating, cooling, drainage and mechanical supplies to tradespeople in the UK. The business accounted for nearly 9 per cent of the group’s revenue in the fiscal year ended July 2020.
"The transaction further simplifies the group and allows us to focus entirely on investing in and developing our business across North America, where we have the greatest opportunities for profitable growth," chief executive Kevin Murphy said. – Reuters
