Wolseley offloads Brandon tool hire for £43m

FTSE 100 building supplies giant Wolseley today sold its tool hire business Brandon to private-equity group Rutland Partners for £43 million.

Wolseley bought the listed company for £71.9 million in an agreed takeover four years ago and doubled it in size by merging it with its existing tool hire division.

Some analysts had suggested it might realise as little as half the purchase price but the auction attracted several private-equity firms.

Brandon was one of 19 non-core businesses warned in March by Wolseley chief executive Ian Meakins that they needed to improve their financial performance rapidly or be sold. The tool hire market has been dramatically hit by the downturn in housebuilding over the past couple of years.

Rival Hewden Stewart was also bought by a private-equity firm in a £110 million deal.

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."