Ferguson plc has announced that it has entered into an agreement to sell Wolseley UK, its UK based heating and plumbing distribution business, to Clayton, Dubilier & Rice, a global private investment firm for net cash consideration of approximately £308 million.

In the year ended July 31, 2020 Wolseley UK generated revenue of $1,879 million and underlying trading profit of $8 million on a pre-IFRS 16 basis. Gross assets at July 31, 2020 were $1,093 million. Excluding the net pension liability, the net operating assets of Wolseley UK at July 31, 2020 were $378 million.

Although he company announced less than a month ago that the demerger was still uncertain, it now expects the transaction to be completed at the end of January 2021.

Kevin Murphy, Chief Executive of Ferguson, commented: "Wolseley is a leading heating and plumbing distribution business in the UK and we are confident the business will benefit from working with its new owners, Clayton, Dubilier & Rice who will develop the business further by focusing on continued opportunities in the industry.

"We’d like to thank all our associates for their tireless hard work while they have been part of the Group, especially recently through the COVID-19 pandemic. We wish them all the very best for the future.

“The transaction further simplifies the Group and allows us to focus entirely on investing in and developing our business across North America where we have the greatest opportunities for profitable growth.”

Clayton, Dubilier & Rice is already the owner of SIG and b&m.