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 private equity investor for net cash consideration of approximately £308 million.

In the year ended July 31, 2020 Wolseley UK generated revenue of £1.4 billion million and underlying trading profit of £6.2 million

Responsibility for the UK defined benefit pension scheme will be retained within the Ferguson plc Group.  The deal is expected to complete at the end of January 2021.

Kevin Murphy, chief executive of Ferguson, said: “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.

“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.”