Ferguson to split off UK operations, focus on US

LONDON: Plumbing parts distributor Ferguson named the head of its US business as its new chief executive and said it would separate off its UK operations to focus squarely on its largest market in the United States.

The moves, which pushed shares in the Ukbased company as much as 3.7% higher, come ater billionaire activist investor Nelson Peltz’s Trian fund took a 6% stake in Ferguson.

Sky News reported in July that the fund was urging Ferguson to sell UK business Wolseley and move its London stock market listing to New York.

Ferguson, which generates about 80% of its revenues in the United States, said CEO John Martin was stepping down and would be replaced by US operations chief Kevin Murphy from Nov.19.

“Ferguson will now become a fully North America-focused business,” the company, formerly known as Wolseley, said.

“The rationale for the demerger is to simplify the group and to allow both businesses the ability to concentrate on customers in their own market,” it added.

Ferguson’s shares were up 2.1% at 6,274 pence, topping the UK’S benchmark FTSE-100 index.

Ferguson, which operates from over 1,400 locations in the United States, said it was also considering the “most appropriate listing structure” for the group.

“We expect that the North American business will seek a US listing, with Wolseley UK remaining in the UK and a likely target for the bigger domestic merchant companies,” Davy Research analysts wrote in a note to clients.