Wolseley announces that it has signed an agreement to sell its Electric Center business to Edmundson Electrical, a leading distributor of electrical equipment to trade and industry in the UK. Completion will follow a period of employee consultation and is expected to occur in the next few weeks.

In the year ended 31 July 2010, the business generated revenue of £130 million and trading profit of £1.5 million. In the 10 months ended 31 May 2011, revenue was £115 million and trading profit was £2.2 million. Net assets at completion are expected to be around £29 million and the transaction is expected to generate a small gain on disposal. The cash consideration will be used to pay down debt.

Commenting on the sale, Ian Meakins, Chief Executive of Wolseley plc, said:

"This transaction is in line with our strategy of focusing on businesses where we can create leading market positions. Given the complementary nature of Edmundson and Electric Center, the transaction represents a good outcome for the business and its employees. We wish them every success for the future."