Disposal

RNS Number : 2115K

Wolseley PLC

12 July 2011

 



WOLSELEY PLC

12 July 2011

Disposal of Electric Center

Wolseley announces 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 31 July 2010, the business generated revenue of £130 million and trading profit of £1.5 million.  In the 10 months ended 31 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 plc, 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."

For further information please contact

Wolseley plc

John Martin, Chief Financial Officer	Tel:       [phone]
Mark Fearon, Director of Communications and IR	Mobile: +44  (0) 7711 875070

Brunswick (Media Enquiries)

Mike Harrison, Nina Coad

Tel:       [phone]

Notes to editors

Wolseley plc 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 31 July 2010 was £13.2 billion and trading profit was £450 million. At 31 July 2010 Wolseley had approximately 47,000 employees operating in 25 countries. Wolseley is listed on the London Stock Exchange (LSE: WOS) and is in the FTSE 100 index of listed companies. The Group will issue its full year results on Tuesday 4 October 2011.

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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Certain information included in this announcement is forward-looking and involves risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed or implied by forward-looking statements.  Forward-looking statements cover all matters which are not historical facts and include, without limitation, projections relating to results of operations and financial conditions and the Company's plans and objectives for future operations, including, without limitation, discussions of expected future revenues, financing plans, expected expenditures and divestments, risks associated with changes in economic conditions, the strength of the plumbing and heating and building materials market in North America and Europe, fluctuations in product prices and changes in exchange and interest rates. Forward-looking statements can be identified by the use of forward-looking terminology, including terms such as "believes", "estimates", "anticipates", "expects", "forecasts", "intends", "plans", "projects", "goal", "target", "aim", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology.  Forward-looking statements are not guarantees of future performance.  All forward-looking statements in this announcement are based upon information known to the Company on the date of this announcement.  Accordingly, no assurance can be given that any particular expectation will be met and readers are cautioned not to place undue reliance on forward-looking statements, which speak only at their respective dates. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future.  Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure and Transparency Rules of the Financial Services Authority), the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Nothing in this announcement shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws

 

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