Ferguson plc (FERG.L) said it agreed to sell its UK based heating and plumbing distribution business, Wolseley UK, to Clayton, Dubilier & Rice, a global private investment firm for net cash consideration of about £308 million.
Wolseley UK generated revenue of $1,879 million and underlying trading profit of $8 million, on a pre-IFRS 16 basis, in the fiscal year ended July 31, 2020. Gross assets at July 31, 2020 were $1,093 million.
Following completion of the Disposal, future responsibility for the UK defined benefit pension scheme will be retained within the Ferguson plc Group. At July 31, 2020 the net pension liability was $27 million on an IAS 19 basis. Excluding the net pension liability, the net operating assets of Wolseley UK at July 31, 2020 were $378 million.
Ferguson expects to complete the transaction by the end of January 2021. Further, the company currently intends to make a return of substantially all of the net cash proceeds of sale to shareholders by way of a special dividend.
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