Wolseley in line for £94m boost from Swiss merger deal

Wolseley

Plumbing and heating products supplier Wolseley has signed an agreement to merge part of its Swiss business in what could be a £94m money-spinner for the group.

The Leamington Spa-based group is set to merge Tobler, its Swiss plumbing and heating business, with Walter Meier, a fellow Swiss heating and HVAC (heating, ventilation and air conditioning) distributor.  

If completed, Wolseley said the merger would be consistent with the strategic objectives of both itself and Walter Meier to create a high quality, market-leading business across plumbing, heating and HVAC distribution in Switzerland.

The proposed merger is subject to approval by Walter Meier’s shareholders, appropriate financing and Swiss competition clearance and it said could therefore be no certainty that the transaction would be completed.

If it is completed, Wolseley expects to receive a cash consideration of CHF117.8m (£94m) and a 39.2% minority holding in the newly combined and enlarged business.

Wolseley is the world’s largest specialist trade distributor of plumbing and heating products to professional contractors and a leading supplier of building materials, operating in North America, the UK and Continental Europe. Revenue for the year ended July 31, 2016 was £14,430m and trading profit was £917m. Wolseley employs around 39,000 globally.

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