CD&R to acquire Wolseley UK
Clayton, Dubilier & Rice has agreed to acquire Wolseley UK from Ferguson plc.
Through a carve-out transaction for a net consideration of £308 million, Wolseley will become an independent company wholly owned by CD&R funds and management.
The transaction represents the 12th building products and industrial distribution investment completed by CD&R over the last decade. In 2020, CD&R carved-out White Cap, the distributor of specialty construction products, from HD Supply and completed a partnership investment in SIG plc, a UK-listed building products distributor.
Wolseley is a distributor of plumbing and building materials and products, generating approximately £1.5 billion of revenue in FY2020. Nearly two-thirds of the company's revenue is derived from residential renovation, maintenance, and improvement activities. In addition to plumbing and heating products and the associated pipes, valves, and fittings, the company offers air conditioning and refrigeration products to commercial customers as well as products to the civil infrastructure and utilities markets.
Bruno Deschamps, Operating Advisor to CD&R funds and former COO of Ecolab, will serve as chairman of Wolseley upon the close of the transaction, expected in the first quarter of 2021. Wolseley is led by chief executive officer Simon Oakland, who will continue in that role.
"We believe that Wolseley, as a freestanding enterprise, can accelerate growth, enhance customer service, and create rewarding career opportunities for our colleagues," said Oakland. "CD&R has extensive experience supporting branch-based networks like ours and shares our vision to continue to build Wolseley's entrepreneurial culture and relentless focus on customer satisfaction."
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
