3rd Sep 2019 08:05
(Alliance News) - Ferguson PLC on Tuesday said it intends demerge its UK operations and will evaluate a new listing structure for its businesses.
The company also said that Chief Executive John Martin will leave his role in November.
Shares in the company opened 3.5% higher at 6,352.00 pence each.
Wolseley UK will become an independently-listed company solely serving the UK market and Ferguson will be wholly focused on North America, the company explained.
The plumbing and heating products distributor, which has previously mulled a US-listing, said it will consider the "most appropriate listing structure" for its businesses.
Chief Executive Martin said: "The demerger will enable both Wolseley UK and Ferguson to focus on accelerating the execution of their independent plans, providing clear investment propositions for each business.
"Wolseley UK has a strong market position, leading customer propositions and an experienced management team with significant opportunities for development in the plumbing, heating and infrastructure markets. Ferguson will continue to execute its successful strategy, building on a strong track record of profitable growth, market outperformance and generating attractive returns for shareholders."
Martin is slated to step down as chief executive of the company on November 19 and will be replaced by Kevin Murphy. Murphy joined Ferguson's board in 2017 when he was appointed as the chief of the company's US operations.
Chair Gareth Davis said: "Martin's contribution to Ferguson over nearly 10 years has been outstanding, as is evident from the market-leading positions of our businesses, the strength of our management team and the excellent financial performance of the business over that period."
"I am delighted that Murphy will take over as chief executive. Murphy is a very capable and highly respected leader, he has unparalleled experience of our industry and an excellent track record of delivery at Ferguson. The board is confident that he will provide the strong leadership required to capitalise on the substantial opportunities in these large, attractive and fragmented markets," Davis added.
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