The board of Ferguson has announced plans to demerge its Wolseley UK operations subject to shareholder approval.
The decision marks the conclusion of a detailed review of the group’s assets over several years, according to a statement, and on completion of the transaction Wolseley UK will become an independent listed company serving residential and commercial tradespeople and customers.
The separation was designed to further simplify the group and enable Wolseley UK to focus exclusively on customers in the UK market. Following the demerger Ferguson will be wholly focused on serving customers in North America.
John Martin, chief executive of Ferguson, said: “The demerger will enable both Wolseley UK and Ferguson to focus on accelerating the execution of their independent plans, providing clear investment propositions for each business.
“Wolseley UK has a strong market position, leading customer propositions and an experienced management team with significant opportunities for development in the large and fragmented plumbing, heating and infrastructure markets. Ferguson will continue to execute its successful strategy, building on a strong track record of profitable growth, market outperformance and generating attractive returns for shareholders.”