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Ferguson agrees to sell Nordic business for 885m

Plumb Centre

The plumbing and heating group Ferguson, owner of the Plumb, Drain and Pipe Centers and the online bathroom retailer Soak.com in the UK, said it would sell Stark Group as part of efforts to focus on its core business.

Stark Group, a Nordic based building materials business has been sold to US private equity firm Lone Star Funds for £885 million. In the 12 months to July, the company generated sales of just under £2 billion, but only generated a profit of £57m.

John Martin Ferguson chief executive said: “The sale of Stark Group will secure an excellent future for our people and will continue to ensure that customers’ needs are met. The transaction represents a good outcome for Ferguson shareholders and will enable us to continue to focus on our strategy of accelerating profitable growth in our plumbing and heating businesses.”

In October 2017, the company  saw annual pre-tax profits increase 75% to £1.2 billion, due predominantly to strong growth from its revamped US operation. The decision to change the groups name from Wolseley to Ferguson in July was part of efforts to focus more on the US, where it trades under the Ferguson name and generates the majority of its revenue.

Source: Insight DIY Team

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13 November 2017

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