Wolseley Disposes of Irish Business
Wolseleyannounced that it will dispose of 100% of its shareholding in Wolseley Ireland Holdings Limited (WIHL) to WIBHM Limited, a private investor-backed company, for total consideration of E26.5 million (P23.8 million).
WIHL comprises the Company's entire interest in the Republic of Ireland including the Heat Merchants, Brooks, Tubs and Tiles and Encon Ireland trading brands and also includes the Brooks business in Northern Ireland. The combined businesses operate through a network of 67 branches and approximately 650 employees.
Wolseley is disposing of the businesses in line with its strategy of focusing its activities where they have been more successful. CEOIan Meakinscommented, "I am confident that the transaction we have concluded with WIBHM Limited represents a good outcome for Wolseley's shareholders. It will also enable us to bring an even greater degree of focus on driving performance improvement in our core UK businesses."
Cash consideration of E6.5 million (P5.8 million) was paid on completion. The balance of E20 million (P18 million) will be satisfied through a loan note issued in favor of Wolseley at a coupon of 10%, to be repaid within one year. Under the terms of the agreement, Wolseley has agreed to fund the deficit in the Northern Ireland pension scheme (currently estimated to be E5.5 million (P4.9 million)), and this will be repaid by the purchaser by means of a separate loan note with a coupon of 3%.