Wolseley restructure heavyside divisions

Builders merchant group Wolseley UK have reformed their heavyside merchanting arm, following a similar restructuring of their lightside plumbers merchant businesses.

The new heavyside division will comprise the Build Center, Drain Center, Brandon Hire and Encon Insulation businesses, together with branches that Wolseley runs on behalf of specific customers.

The heavyside division will be led by Steve Ashmore, previously managing director of Plumb Center and Parts Center. Paul Gordon, previously managing director of Build and Drain Center, has left the business.

The commercial and industrial division will comprise the Climate Center, Electric Center and Pipe Center businesses. It will be led by Tony Morris, previously managing director of Climate Center and Pipe Center. Mark Eburne has left the business.

Rob Marchbank, managing director of Wolseley UK, said that the creation of the two divisions will “ensure we align our business to our customers and improve our ability to leverage and utilise some of the best practices across our businesses.”

Marchbank is CEO of Wolseley’s European arm and was appointed UK managing director last month after the first round of restructuring, when UK managing director Nigel Sibley and human resources director Bob Mason left the business.

The lightside division was restructured two weeks ago, with Keith Jones taking over as managing director across the group’s lightside brands, including Plumb Center and William Wilson.

Marchbank also said that the priority now will be a continuing review of management structures to see where further syngeries, efficiencies and cost savings can be found to increase the group’s competitive position.

Wolseley’s share price has been see-sawing up and down in the past months. They issued a trading update on July 16 in which they announced that the final dividend would not be paid, at which point the share price slide to 272.25, its lowest ever. Today at 11am it was 420p, having leaped last week on speculation that the group might sell the US-based Stock Building Supplies.

Editor’s blog on the subject, click here