Wilts Wholesale Electrical sold to Rexel

Wilts, the UK’s largest independent distributors of electrical supplies has completed the sale of 59 of its 62 branches to industry leader Rexel which trades under the Newey & Eyre, Rexel and Senate brands in the UK. The transaction involved the sale of the trade, goodwill and stock. Over 95% of Wilts 400 staff transferred to Rexel. In the year ended March 2010, Wilts reported an operating loss of £6.5m on turnover of £83m.

Wilts ceased to trade immediately following the transaction and all bank debt was fully repaid immediately from sale proceeds. The company, now renamed Fernturn Limited, will collect trade debtors and realise property and other retained assets: proceeds will be used to settle trading liabilities, including pension-related debt.

Commenting on the transaction, Nick Winks, CRO of Wilts since October 2010 said “a great deal has been done to improve the underlying operating performance of the Wilts business – substantial cost base and working capital savings have been achieved. However, the continuing tough market climate and resultant continuing losses meant that the best course of action was to move the business on to a strong trade player. An excellent price was obtained and most of the company’s employees have transferred to the new owner.”

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