Member Article

Grant Thornton advises on Fusion sale

A corporate finance team from Grant Thornton’s Manchester office has advised Fusion Group, which manufactures, distributes and provides equipment and services to gas, water and electricity companies for infrastructure projects on the sale of its UK distribution businesses to Wolseley UK, the leading distributor of heating and plumbing products.

The consideration has not been disclosed, but the deal includes three businesses, employing some 200 people. The businesses are all operated from Derbyshire, with depots all around the UK.

The companies involved include the Fusion Provida materials business, which is focused on materials and components for utility companies in the UK and Fusion Provida Hire & Repair, which provides hire and repair services for pipe jointing equipment.

The third business is Utility Power Systems, an electricity infrastructure specialist which distributes materials for building and maintaining low and high voltage networks.

The depots involved are located in Scotland - Livingstone & Bathgate, North West – Haydock; North East – Tyne and Wear; West Midlands – Halesowen; Yorkshire – Leeds; South East – Hatfield, Herts; South West – Bristol. The employees in these locations will transfer into Wolseley UK and no jobs losses are expected.

Kevin Raine, group managing director at Fusion: “We’re delighted to have concluded the deal with Wolseley, which represents a healthy return on the investment we have made over a number of years in developing these businesses.

“Our own focus is in other parts of the marketplace and our international distribution business and the transaction will help us fulfil our strategic objectives.”

Corporate finance and tax teams in Manchester and Sheffield from the accounting and advisory firm Grant Thornton led by Ali Sharifi, Andy Westhead, Claire Davis and Joe Pollard advised Fusion on the disposal.

Ali Sharifi, the firm’s national head of corporate finance, commented: “We congratulate Fusion on this completion. It was an excellent time for the group to realise value and the deal allows the company to concentrate on development plans elsewhere in the utilities markets.”

Richard May and Anna Lewis headed up the team at the Sheffield office of DLA Piper which provided legal advice to the majority shareholders. Jonathan Asquez at Gordons advised the minority shareholders.

Wolseley UK Ltd is the UK operating subsidiary of Wolseley PLC, one of the largest distributors of building products in the world. Wolseley UK’s head office is at Leamington Spa in Warwickshire. The company is wholly engaged in the distribution of construction products and materials through a nationwide branch network.

The company is organised into trading brands, which service distinct customer groups. Many of these brands are market leaders with outstanding reputations for supplying professionals in the construction market.

Names such as Plumb Center, Parts Center, Pipe Center, Drain Center, Climate Center, William Wilson are widely recognised throughout the industry.

This was posted in Bdaily's Members' News section by Simon Malia .