Wolseley gets £145m sell-off clearance
Heating and plumbing specialist Wolseley has completed the disposal of its Build Center division to Coventry-based Saint Gerbain.
Constructive materials distributor Saint Gobain announced it would purchase the business from the Leamington Spa-based heating and plumbing specialist on 25 July for £145m.
Wolseley told the Stock Exchange it would continue to provide some services to Build Center under a transitional services agreement over the next year. The company said the deals were the "last significant disposals planned" following last year's strategic review.
The deal was given the stamp of approval from the competition commission on Friday (4 November).
Ian Meakins, chief executive of Wolseley, said: "The transactions we have announced today are the last significant disposals planned following last year's strategic review.
"We will continue to focus and invest in our strongest businesses in core markets including building materials and wood solutions in France and plumbing, heating, pipe, climate and associated businesses in the UK."
In the year ended 31 July 2010, Build Center generated revenue of £316m and trading profit of £1m. In the 11 months ended 30 June 2011, revenue was £294m and trading profit was £4m.
