Wolseley offloads Bathstore to turnaround specialist

Plumbers merchant Wolseley has completed the sale of its UK retail business Bathstore, as part of its non-core disposal programme.

Bathstore has been sold to a newly incorporated company backed by turnaround investor Endless LLP for £15m payable over the next five years. Endless LLP has invested £11m of new capital into the business to fund its further development.

Endless LLP is an independent UK-based private equity house which provides "financial investment and hands-on turnaround expertise to businesses facing challenges or finding themselves in special situations," the firm's website says.

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"This disposal is in line with our strategy of focusing on our core operations. I would like to thank the staff of Bathstore for their commitment to the business and wish them every success for the future," said Wolseley's Chief Executive Ian Meakins.

Bathstore generated £66m in sales in the nine months to April 30th and had associated assets valued at £7m on January 31st.

In April, the firm completed the sale of its French plumbing and heating business Brosette to Saint Gobain, first announced on July 2011.

Shares were trading 1.2% higher at 2,273p by 14:58 on Friday afternoon.

BC