Wolseley to sell two divisions in £310m deal
BUILDING supplies group Wolseley is selling two more of its divisions in deals worth £310m.
Earlier this month, Wolseley announced it was selling its Leamington Spa-based electric products wholesaler the Electric Center in a deal worth between £30m and £40m.
Today the company has revealed it has sold the Build Center, its building material distribution hub also headquartered in Leamington, and entered into exclusive negotiations for its Lyon-based plumbing and heating distribution business Brossette.
Both deals are with Saint Gobain, a designer, producer and distributer of construction materials whose UK and Irish operations are headquartered in Coventry.
Wolseley said in the year ended July 31, 2010, Build Center generated revenue of £316m and trading profit of £1m. Net assets at completion are expected to amount to approximately £136m with a sale price of £145m.
It added that in the year ended July 31, 2010, Brossette generated revenue of £648m and a trading loss of £7m.
This transaction is expected to result in the disposal of the business for £165m with proceeds from both sales being used to pay down debt.
The total gross assets of these transactions was £409m at the end of January 2011 and associated restructuring costs following the sales are expected to be £15m.
Wolseley chief executive Ian Meakins said: “The transactions we have announced today are the last significant disposals planned following last year’s strategic review.
“We will continue to focus and invest in our strongest businesses in core markets including building materials and wood solutions in France and plumbing, heating, pipe, climate and associated businesses in the UK.”
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