Ferguson has agreed to sell Stark Group, its Nordics building materials distribution business, to an affiliate of Lone Star Funds, a global private equity firm, for €1 billion (US$1.2 billion).

Ferguson said earlier this year it would divest its Nordic division, part of a number of changes at the distributor that included rebranding from Wolseley to Ferguson plc and appointing a new CEO for its U.S. business, Ferguson Enterprises.

In the year ended 31 July 2017, Stark Group generated sales of €2.2 billion (US$2.6 billion).

"The sale of Stark Group will secure an excellent future for our people and will continue to ensure that customers’ needs are met," said John Martin, chief executive of Ferguson. "The transaction represents a good outcome for Ferguson shareholders and will enable us to continue to focus on our strategy of accelerating profitable growth in our plumbing and heating businesses.”