(Sharecast News) - Ferguson shareholders are set to share in a cash windfall after the company said it was selling its UK-based Wolseley heating and plumbing distribution business to a private investment firm for £308m.
The iconic brand is being sold to Clayton, Dubilier & Rice. Ferguson expects the deal to compete by the end of the month and the board plans "to make a return of substantially all of the net cash proceeds of sale to shareholders by way of a special dividend".
"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," said chief executive Kevin Murphy.
In the year to July 31, 2020 Wolseley UK generated revenue of $1.87bn and underlying trading profit of $8m on a pre-IFRS 16 basis. Ferguson said it would take responsibility for the UK defined benefit pension scheme which had a net liability of $27m.
"The Wolseley UK business being disposed will retain no ongoing liabilities in relation to the UK defined benefit pension scheme. Excluding the net pension liability, the net operating assets of Wolseley UK at July 31, 2020 were $378m," it added.
Ferguson (FERG)24 Jun 2024 09:44
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