Ferguson to spin off UK operations; CEO to step down

(Sharecast News) - Plumbing merchant Ferguson said it planned to spin off its UK operations and list Wolseley UK as chief executive John Martin announced he would step down on November 19.
"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," Martin said.

Ferguson, which was previously known as Wolseley, reportedly sounded out major investors about switching its listing from the UK to the US as it looked for a defence against US activist fund Trian Partners, which holds almost 6% of the company.

The firm said the demerger followed a lengthy strategic review of the group and would allow the new business to "focus exclusively on customers in the UK market", while Ferguson would primarily serve North America.

The company's UK division has struggled in difficult market conditions due to Brexit worries, posting lower revenues, as it axed branches and quit its unprofitable wholesale business.

Martin will be replaced by Ferguson's US operations chief executive Kevin Murphy, who has been at the firm for 20 years.





Ferguson