Demerger to create new stock market-listed business

Wolseley UK's headquarters at Warwick Technology Park

Wolseley UK is to demerge from its American parent company Ferguson and become an independent stock market-listed business.

The Warwick-headquartered business sells plumbing and building materials and products, and last year generated sales of £1.77bn. Pre-tax profits reached £58.3m.

Ferguson said the separation will “further simplify the group” and will enable Wolseley UK to focus exclusively on customers in the UK market with Ferguson then wholly focused on serving customers in North America.

Ferguson chief executive John Martin, who also today announced he will leave in November, said: “The demerger will enable both Wolseley UK and Ferguson to focus on accelerating the execution of their independent plans, providing clear investment propositions for each business.

“Wolseley UK has a strong market position, leading customer propositions and an experienced management team with significant opportunities for development in the large and fragmented plumbing, heating and infrastructure markets.”

The company is “considering the most appropriate listing structure for the group” before sharing more information with shareholders.

Wolseley UK employs 5,600 people across its bases in Warwick and Ripon, and network of more than 550 branches.

Wolseley began life as the Wolseley Sheep Shearing Machine Company in 1887 and it wasn’t until the 1960s that it became focused on heating products.

It acquired Ferguson in 1982, and in 2017 the parent company became known as Ferguson to reflect its largest brand. The combined £17bn-turnover business now lays claim to being the world’s largest specialist trade distributor of plumbing and heating products to professional contractors.

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