Wolseley has finally exited its US building supplies business with the sale of its remaining stake in Stock Building Supply for £15m. For Wolseley it represents the final chapter in its building materials business in the US as it seeks to focus on core plumbing and heating operations there. Stock was formed from Wolseley's acquisition of Carolina Builders in 1986 and it grew into a US$2.5bn turnover company with 200 sites to become the second largest provider of building materials and construction services to US professional homebuilders and contractors. In 2008 it recorded a trading loss of US$119m, after being hit by problems in the US housing market and lower lumber prices. Wolseley signed a deal with investment group Gores to form a new joint venture company to run the business, via a Chapter 11 reorganisation. Wolseley retained a 49% equity interest. Wolseley said no revenue or trading losses were recognised against its minority holding for the year to July 31, 2011. Source: ttjonline.com
Source:
http://www.ttjonline.com/story.asp?sectioncode=17&storycode=68756&c=2
