Ferguson inks £308m sale of plumbing supplies business Wolseley UK

Following completion of the disposal, future responsibility for the UK defined benefit pension scheme will be retained within the Ferguson Group.  

The sale is expected to complete at the end of  this month.  After that, Ferguson plans to update shareholders on the use of the proceeds of sale.  

The board's current intention is to make a return of substantially all of the net cash proceeds of the sale to shareholders by way of a special dividend.

Rothschild & Co is  advising Ferguson on the deal.  

Kevin Murphy, chief Executive of Ferguson, 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.”

Murphy added: "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."

Clayton, Dubilier & Rice, which has offices in London and New York, said the transaction represents the twelfth building products and industrial distribution investment it has completed over the last decade.

CD&R Partner Christian Rochat, said: “Wolseley is a market-leading distribution platform in an industry where CD&R has extensive prior experience and success, and we believe it represents a compelling opportunity to invest at an inflection point and work with a highly credible management team to drive operating improvements and accretive M&A."