Plumbers merchant Wolseley has exited another non-core sector with the sale of its insulation subsidiary Encon.
The business has been bought by a management buy-out team, led by managing director Stuart Moore.
The Encon group of businesses includes Encon Insulation, Nevill Long, Gill Insulation & PFC Corofil. It operates a national network of 24 locations, employing around 560 people. In the year ended July 31, 2011, turnover was £194m.
Wolseley UK announced internally its intention to sell Encon on July 25 2011. It is the latest in four major disposals of non-core businesses – Brandon Hire, Electric Center and Build Center having been sold already. Encon was acquired by Wolseley in 2005 for £140m; the current sale price is undisclosed.
Moore, who has worked across a spectrum of roles within Encon for 24 years, said: “As the new owner of Encon, I believe we have an excellent opportunity to drive the business forward and I truly believe we have an exciting journey ahead of us”.
“The Encon group of businesses remain committed to delivering the same high levels of customer service as always. The management team is committed to ensuring that customer service excellence remains Encon’s number one priority.”
Wolseley UK’s managing director Steve Ashmore said: “This decision has not been taken lightly as Encon is a sound and well-run business, but we believe it offers the best way forward for Encon and its employees under the leadership of Stuart Moore. It is also fully aligned to Wolseley UK’s strategic objectives to focus on being the best merchants in our chosen core markets.”