Electric Center sold to rival
Builders' and plumbers' merchant Wolseley has sold its £130m-turnover business, Leamington Spa-based Electric Center. New owner Edmundson told Insider the acquired business would remain a separate division within the company.
Cheshire-headquartered electrical wholesaler Edmundson Electrical purchased its rival for an undisclosed sum.
Electric Center operates from 84 sites across the UK. The business had sales of £115m and a trading profit of £2.2m in the ten months to 31 May 2011.
In a statement to Insider, Edmundson said the acquired company would become a separate division within the group. A spokesman added that the deal is expected to complete by the end of the month.
Wolseley said Electric Center's net assets at completion are expected to be about £29m. It will use the cash generated from the disposal to pay down debt.
Ian Meakins, chief executive of Wolseley, added: "This transaction is in line with our strategy of focusing on businesses where we can create leading market positions.
"Given the complementary nature of Edmundson and Electric Center, the transaction represents a good outcome for the business and its employees. We wish them every success for the future."
