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Wolseley sells Encon in MBO

1 Nov 11 Building materials group Wolseley has sold its Encon insulation subsidiary to a management buyout team.

The Encon group of businesses includes Encon Insulation, Nevill Long, Gill Insulation & PFC Corofil. With headquarters in Wetherby, it operates through a national network of 24 locations, employing around 560 people, and turned over £194m in the year ended 31 July 2011.

The management buy-out was led by CEO Stuart Moore, who has been with the company for 24 years, and is backed by a £35m receivables finance line from Lloyds TSB Commercial Finance.

Established in 1981, Encon is a leading distributor of insulation and fire protection products, dry lining, suspended ceilings and partitioning to all sectors of the construction industry from major contractors and house builders to specialist subcontractors.

Wolseley UK announced the potential sale of Encon on 25 July, having taken the decision that the market in which Encon operates is no longer part of its core business.

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Wolseley UK 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.”

Mr Moore 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.”

Encon’s expansion strategy will focus on organic growth, opening new sites to increase its geographical reach, and expanding its partitioning and roofing product lines. It also plans to develop a range of sector-specific solutions to target selected customer segments.

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