Rutland Partners has exchanged unconditional contracts with Wolseley for the acquisition of Brandon Hire.

The consideration will be GBP43m payable in cash on completion subject to normal closing adjustments.

Brandon is a tool and equipment hire business with a national network of 177 depots. It has over 50,000 local trade and smaller business accounts operating in a range of maintenance, building and service sectors as well as national contracts with larger customers.

Brandon is being sold as it no longer fits with Wolseley’s strategic objectives.

The senior management team of Brandon, led by Tim Smith, will remain with the business and are investing alongside Rutland.

The separation of Brandon from Wolseley involves a number of complex arrangements including the transfer of a number of former Wolseley employees. A consultation process has commenced and will last approximately 30 days. Completion is unconditional and will take place in late September following the consultation period.

The acquisition of Brandon will be the fourth investment from Rutland’s GBP322m second fund, Rutland Fund II, raised in 2007. Depending on the final debt and equity split, the fund will be approximately 40 per cent drawn down following the transaction. Earlier investments were Attends Healthcare, Pulse Home Products and CeDo.

Nick Morrill, managing partner of Rutland, says: “Brandon has had a difficult couple of years as it was forced to adapt to market conditions but Tim Smith and his team have done a great job in managing that process. Rutland looks forward to helping Brandon continue its recovery in what remains a highly challenging economic environment.”

Smith adds: “The Brandon management team are delighted to be working with Rutland who we see as an ideal investor for this type of situation. Together we are committed to taking the business to a leading position in the sector and continuing to improve performance.”