Wolseley disposes of hire firm for £43m

Warwickshire-based building group Wolseley has announced the disposal of its Brandon Hire tool and equipment hire business to Rutland Partners in a deal worth £43m.

In the year ended July 31, 2010, Bristol based Brandon Hire generated revenue of approximately £70m.  Net assets being disposed of amount to approximately £35m.
 
Ian Meakins, Chief Executive of Wolseley, said: “We are disposing of the business in line with Wolseley’s stated strategy of focusing on our growth businesses and those with synergies. 

“Rutland Partners’ investment in Brandon Hire demonstrates their confidence in the business and we wish them every success as they continue to develop the business for the benefit of its staff and customers.”

The total cash consideration of £43m will be payable on completion of the deal, subject to normal closing adjustments. Completion is expected within 30 days.

Wolseley, based in Leamington Spa, is the world’s largest specialist trade distributor of plumbing and heating products to professional contractors and a leading supplier of building materials in North America, the UK and Continental Europe.  Group revenue for the year ended July 31, 2009 was approximately £14.4bn and operating profit was £447m. The company employs around 47,000 employees in 25 countries.