WT Burden Ltd is to sell 22 of its branches to Wolseley UK for £30m, affecting 600 employees.
The branches will be run as a wholly owned subsidiary of Wolseley UK, while retaining the Burdens brand name.
Legal ownership and operational responsibility for the Burdens branches transfers to Wolseley UK today. Transitional Service Agreements will be put in place between the two companies to ensure continuity of support service.
Commenting on the announcement, Jeremy Burden, chief executive WT Burden Ltd said “The move will enable the Burdens business to be taken to the next stage of its development and will provide it with the level of focus required to continue to realise its full potential in the UK market. We are confident that the transaction will represent an opportunity to enhance service levels to both customers and suppliers and is positive for the employees involved. ”
Steve Ashmore, managing director, Wolseley UK said: “Today’s agreed deal marks another exciting milestone in Wolseley UK’s development. We believe the utilities market, particularly the water industry, offers many growth opportunities and this purchase would put us in a great position in that market. The deal is also in line with Wolseley UK’s strategy to hold leading market positions in all of its businesses.”