Wolseley sells off Yorkshire division
Management has bought out a subsidiary of Leamington Spa-based Wolseley UK after securing a £35m finance line from Lloyds TSB Commercial Finance.
The investment will part-fund the management buyout (MBO) of Encon Group, led by Stuart Moore, from its parent company Wolseley UK.
Established in 1981, West Yorkshire-based Encon distributes insulation and fire protection products, dry lining, suspended ceilings and partitioning to the construction industry. It employs about 500 members of staff.
The £194m turnover business has a network of 24 sites across the UK.
Moore said the company's expansion strategy included plans to open new sites and increase its geographical reach, as well as expanding its partitioning and roofing product lines.
Wayne Mills, business development director in Lloyds TSB Commercial Finance’s major corporates division, said: "As the property market gradually improves and increasing environmental legislation means older buildings are refurbished to meet new energy efficiency standards, the insulation market is expected to expand.
"Encon is well placed to capitalise on these market dynamics, with its broad geographic coverage and established reputation in its chosen markets.
Lloyds TSB Commercial Finance and Lloyds Bank Corporate Markets were advised by Wragge & Co and Stuart Moore by Irwin Mitchell.
