Wolseley will sells its UK tool and equipment hire business Brandon Hire to Rutland Partners for a total cash consideration of £43 million on completion, the firm announced today.
The business generated revenue of approximately £70 million in the year ended 31 July 2010, with net assets being disposed valued at around £35 million.
Brandon Hire employs around 960 people and operates through a network of 177 branches.
The firm said that the decision to sell Brandon Hire has been made on strategic and core business activity grounds as tool and equipment hire is no longer a core business activity within Wolseley UK.
Wolseley chief executive Ian Meakins said: “We are disposing of the business in line with Wolseley’s stated strategy of focusing on our growth businesses and those with synergies.
“Rutland Partners’ investment in Brandon Hire demonstrates their confidence in the business and we wish them every success as they continue to develop the business for the benefit of its staff and customers.”
Completion is expected within 30 days.