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24th November 2017
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Wolseley announces disposal of Electric Center
Wolseley has announced this week that it has signed an agreement to sell its Electric Center business to Edmundson Electrical, a leading distributor of electrical equipment to trade and industry in the UK. Completion will follow a period of employee consultation and is expected to occur in the next few weeks.
In the year ended 31st July 2010, the business generated revenue of £130 million and trading profit of £1.5 million. In the 10 months ended 31st May 2011, revenue was £115 million and trading profit was £2.2 million. Net assets at completion are expected to be around £29 million and the transaction is expected to generate a small gain on disposal. The cash consideration will be used to pay down debt.
Commenting on the sale, Ian Meakins, Chief Executive of Wolseley, said:
"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."
Wolseley is the world's largest specialist trade distributor of plumbing and heating products to professional contractors and a leading supplier of building materials in North America, the UK and Continental Europe.
Group revenue for the year ended 31st July 2010 was £13.2 billion and trading profit was £450 million. At 31st July 2010 Wolseley had approximately 47,000 employees operating in 25 countries.
Electric Center part of Wolseley UK, was formed following the acquisition of AC Electrical Wholesale in 2006. The business has 575 employees and 85 branches.
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15th July 2011