Sale of Wolseley companies leaves shadow over Leamington jobs

Build Center employs around 1,600 people at its branches, the nearest being in Rugby.

But staff at Wolseley’s Leamington headquarters in Harrison Way, Spa Park, provide support services for Build Center and other divisions within Wolseley.

Wolseley identified 19 ‘non-core’ businesses for sale in Britain and overseas, and of these, 11 have already been sold.

Around 420 work for Wolseley in Leamington, which moved onto the site in November, 2005.

The company was keeping tight-lipped about how the sale will affect jobs in Leamington.

A statement about the sale said: “Wolseley UK will be reviewing some of its support services activities provided to its businesses as a result of the intended sales.”

Support services typically involve those in human resources, IT, finance and administration.

The statement went on “However, it (Wolseley) remains committed to staying in its Leamington office site.”

The sale of Build Center to French-owned Jewson must be approved by the European Commission because of competition rules and, if agreed, will leave Wolseley with nearly 8,000 workers in the UK.

Steve Ash, Wolseley UK’s managing director, said: “It enables Wolseley UK to provide our remaining businesses with the level of investment and dedication needed to achieve the aim of becoming the best merchant in all our chosen markets.”

Wolseley, the world’s largest supplier of plumbing and heating products, put Build Center up for sale in May.

Builders’ merchants have struggled with the sharp fall in construction in the UK – which in 2009 saw its sharpest contraction in activity since the 1970s.

As major suppliers to the building trade, builders’ merchants have also been hit by the collapse of companies such as Connaught and Rok, both of which left substantial unpaid debts.

The sale of Build Center and Brosette, its French plumbing and heating distribution company, is expected to raise around £310 million for Wolseley.

Cash raised will help pay off Wolseley’s £824 million worth of debt.

The company operates in 25 countries with more than 40,000 employees.

Group revenue up to July 31 last year was £13.2 billion and trading profit was £450 million.