Wolseley unloads Stock via joint venture with private equity group

U.K.-based diversified distributor Wolseley PLC followed through on its plan to get struggling U.S. building products supply unit Stock Building Supply Holdings, LLC, off its balance sheet. Wolseley sold 51 percent of Stock to a joint venture with a private equity firm, The Gores Group, LLC. Wolseley will retain a 49 percent stake in the business. Based in Raleigh, N.C., Stock is one of the largest suppliers of building products to professional builders, contractors and other customers in the U.S. For its fiscal year ended July 31, 2008, Stock generated $3.5 billion in revenues. Gores’ investment is conditioned upon completion of a voluntary, pre-packaged Chapter 11 filing that will give Stock the flexibility to shed closed locations in underperforming markets and an injection of fresh capital. The pre-packaged bankruptcy includes the stipulation that all trade creditors, suppliers, customers and employees will receive the full allowed amounts owed to them, according to a Gores Group release. As a result, creditors are not required to vote on the plan.