Building materials group Wolseley has expanded into Canada and strengthened its US operations with a £250m deal to buy a plumbing and refrigeration merchant businesses.
Wolseley has signed a conditional contract to buy Westburn's plumbing, refrigeration and industrial products business. The deal is the first major move by the group's new chief executive Charlie Banks.

He said it would allow Wolseley to develop its North American business.

Wolseley, which is based in Worcestershire, generates 60% of its income from North America and has applied for a listing on the New York Stock Exchange.

Westburn, which has 19% of the Canadian plumbing, refrigeration and industrial supplies market, also operates in the USA.

Westburn employs 3000 people and has 19% of the Canadian plumbing, refrigeration and industrial supplies market

Wolseley said Westburn would be integrated into its US businesses. The one-off costs of the integration are expected to be £7m.

Westburn recorded pre-tax profit of £39m last year, on turnover of £650m. It has 3000 staff.

Wolseley's share price rose 3.5p to 532.5p after the announcement, with analysts generally positive about the deal.