Mon, 04 Jan 2021 | BUSINESS SALE
UK-based heating and plumbing distribution company Wolseley UK has been sold to global private investment firm Clayton, Dubilier & Rice for £308 million. The deal, was confirmed by Wolseley’s current owner, USA-based Ferguson Plc.
Ferguson Plc first announced in September 2019 that it was planning to demerge Wolseley UK in order for it to become an independently listed company. In September 2020, Ferguson said it was also exploring other options for separation in parallel with the planned demerger. Last month, the group said that the impact of the COVID-19 pandemic meant the move was “uncertain”.
However, the sale to Clayton, Dubilier & Rice has now been confirmed and is expected to complete at the end of January. Rothschild & Co is acting as Ferguson’s financial advisor on the deal. Once completed, Ferguson intends to return most of the proceeds to shareholders through a special dividend.
Ferguson Plc Chief Executive Kevin Murphy said: “Wolseley is a leading heating and plumbing distribution business in the UK and we are confident the business will benefit from working with its new owners, Clayton, Dubilier & Rice who will develop the business further by focusing on continued opportunities in the industry.”
“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.”
In its most recent accounts, for the year ended July 31 2020, Wolseley UK reported revenue of £1.4 billion, down from £1.65 billion in 2019. However, the company’s profit after tax rose to £79.9 million, from £27 million. Wolseley’s total assets were valued at £1.1 billion, with net assets valued at £467 million.
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