Saint-Gobain to buy Build Center from Wolseley

Wolseley has signed an agreement to sell its UK building materials distribution business Build Center to Saint-Gobain for £145m.

The group is also selling its French plumbing and heating distribution business Brossette for £165m.

The acquisition would give Saint-Gobain, which already owns Jewson, a sizeable market share in the builders merchant market.

“The transactions we have announced today are the last significant disposals planned following last year’s strategic review,” said Ian Meakins, chief executive of Wolseley plc.

“We will continue to focus and invest in our strongest businesses in core markets including building materials and wood solutions in France and plumbing, heating, pipe, climate and associated businesses in the UK.??

“When concluded, these transactions should present good opportunities for staff transferring and ensure that our customers’ ongoing needs are well met.”

In the 11 months ended June 30, 2011, Build Center generated £294m revenue and trading profits of £4m, while in the year ended July 30, 2010 it generated revenue of £316m and trading profits of £1m. Net assets at completion are expected to amount to approximately £136m.

The transaction requires competition clearance.