Ferguson to sell Wolseley UK business for £308M

Ferguson PLC on Jan. 4 agreed to sell Wolseley UK, its heating and plumbing distribution business, to private investment firm Clayton Dubilier & Rice Ltd. for about £308 million in cash.

The company said that the deal simplifies its business structure and will allow it to focus on its North American operations to tap more profitable opportunities.

The Wolseley UK business generated revenue of $1.88 billion and underlying trading profit of $8 million for the year ended July 31, 2020, according to Ferguson. The investment firm will further develop the business in the U.K. market, the company added.

The transaction is expected to be completed by the end of January. Following the completion, the company's board may announce a special dividend.

Rothschild & Co is acting as financial adviser to Ferguson for the sale.