Wolseley sells electrical arm to Edmundson

Grant Prior 11 years ago
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Wolseley is selling its Electric Center business to rival Edmundson Electrical.

The deal will see Wolseley hand over its 90 strong network of branches to Edmundson who currently sell electrical equipment to the trade from 250 outlets.

An employee consultation exercise is currently underway with the deal due to be finalised in the next few weeks.

The move marks a withdrawal from the sector by Wolseley after launching into the electrical market in 2005.

In the year ended 31 July 2010, Electric Center generated revenue of £130m and trading profit of £1.5m.

For the 10 months ended 31 May 2011, revenue was £115m and trading profit was £2.2m.

Wolseley said net assets at completion of the deal are expected to be around £29m and the transaction is expected to “generate a small gain on disposal” which will be used to pay down debt.

Ian Meakins, Chief Executive of Wolseley, 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.”

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