Wolseley confirms it is in discussions with subsidiaries of Frauenthal Holding AG to dispose of ÖAG, Wolseley's Austrian plumbing and heating business.
In the year ended 31 July 2013 ÖAG generated revenue of £239 million and trading profit of £2 million. The associated net assets being sold are expected to be around £25 million and on completion the transaction is expected to generate a small loss on disposal. Closing is subject to receiving the approval of the relevant Austrian competition authorities.
Ian Meakins, Chief Executive of Wolseley, commented:
“This disposal is in line with our resource allocation strategy of focusing on our core operations where we can build significant scale and generate attractive returns. I would like to thank the staff of ÖAG for their commitment to the business and wish them every success for the future.”