Wolseley taps American for top post - Brief Article

Home Channel News, May 21, 2001

Ferguson CEO Charlie Banks charged with jump-starting European growth

DROITWICH, ENGLAND -- Wolseley plc, Europe's largest plumbing and heating products distributor and the parent of U.S.-based Carolina Holdings and Ferguson Enterprises, has promoted Ferguson's president and CEO Charlie Banks to group chief executive overseeing Wolseley's worldwide operations.

Banks, a North Carolina native, is the first American to be appointed the top spot at the multinational building products conglomerate, which reported fiscal 2000 sales of 6.4 billion British pounds, or approximately US$10.1 billion. His promotion also allows Wolseley's chairman Richard Ireland to relinquish the title of acting chief executive that he has held for the past 10 months.

Wolseley is rewarding Banks for his primary role in expanding Ferguson Enterprises -- a plumbing and heating equipment distributor based in Newport News, Va. -- to $4.7 billion in annual sales in 2000 from about $860 million in 1989. During his tenure as CEO, the company's branches increased to 479 from 162.

One of Banks' immediate charges is to jump start Wolseley's European growth, which in recent years has lagged behind the expansion of its U.S. subsidiaries. In addition to Ferguson, Carolina Holdings has also blossomed under Wolseley's watch. When it acquired the then-named Carolina Builders in 1986, it was a regional dealer with seven units. Today it has more than 200 locations and is the country's largest and only true national pro dealer.

Wolseley's sales in the United States last year totaled 4.5 billion pounds (US $7.1 billion), 70 percent of its total revenue. By comparison, Wolseley's U.K. and continental European units -- in France, Italy, Austria, Czech Republic, Hungary, Ireland, Denmark and Luxembourg - generated 2.2 billion pounds.

A Wolseley spokesperson told the London Telegraph that "part of [Banks'] brief is to develop the business internationally. The opportunities have been there for acquisitions in the United States, but it's been harder to find targets in the United Kingdom and Europe The company has already set aside 200 million pounds for acquisitions this year.

Wolseley appointed Chip Hornsby to replace Banks as Ferguson's president and CEO. Hornsby, a 23-year Ferguson veteran, most recently served as the division's senior vp-branch operations. He also receives a position on Wolseley's board of directors. Fenton Hord, Carolina Holdings' president and CEO, also sits on Wolseley's board.

The company announced that it would begin trading on the New York Stock Exchange on May 31 under the ticker WOS. Wolseley shares are already publicly traded on the London Stock Exchange as WLY, but that symbol will change to WOS on May 31 in order to harmonize the ticker names.