Interest builds as Wolseley looks to offload three divisions

Reports said Bank of America Merrill Lynch had been appointed to handle the sales, which will also include electrical products wholesaler Electric Center and insulation specialist Encon,

Build Center supplies builders across the UK through a network of 200 stores, but has struggled with the problems facing the construction industry during the recession. Its revenues last year were about £30m.

Electric Center, which operates from 90 outlets, and Encon, which Wolseley bought in 2005 for £140m, employ 200-300 staff between them.

Interest in the three groups is said to be strong, with UK rival Travis Perkins, French group St Gobain and a number of private equity firms reported to be looking at the chains.

Wolseley, which has an office in Ripon, North Yorkshire, is also said to be close to announcing a buyer for its French plumbing and heating business Brossette. The sale of Brossette, and the disposal of the three UK businesses, are expected to mark the end of the disposal programme instigated by chief executive Ian Meakins following his appointment as head of the group in 2009.

Bathroom chain Bathstore is now likely to stay with the group despite reports earlier in the year that a deal had been struck with private equity group Electra.

Wolseley gives an update on it third-quarter performance next week after a first half that saw it post a profit after two years of annual losses and also return to the dividend list.

Trading profit in the six months ended January 31 rose 64 per cent, helped by stabilising markets, particularly in areas such as repairs and maintenance and new housing.

In March, chief executive Mr Meakins said VAT increases and Government spending cuts in Britain left the outlook more uncertain.

Wolseley posted a five per cent increase in like-for-like revenue to £6.6bn in its financial first half. Trading profit, which strips out exceptional items, amortisation and impairments, rose to £275m versus £167m in 2010.

For the full year to July, the group, which moved its tax base to Switzerland in 2010, is forecast by analysts to make profits of £605m on revenue of £13.6bn.

Wolseley can trace its roots back to the work of entrepreneur Frederick Wolseley, who was born in Dublin and emigrated with his family to Australia as a 17-year-old in 1854.

In 1887, he founded the Wolseley Sheep Shearing Machine Company in Sydney. He moved to England in 1889 and established a manufacturing base in Birmingham.

Wolseley declined to comment on the reports.