USA

We have progressively focused more resources on our business in the USA where we generate the most attractive returns for our shareholders.

Business profile

The US business operates primarily under the Ferguson brand and is the market leading distributor of plumbing and heating products in the USA. It operates nationally, serving the residential, commercial, civil and industrial markets. The largest end market for Ferguson is residential which represents about 50 per cent of sales, commercial about 35 per cent of sales and the remainder is split between civil/infrastructure and industrial. Ferguson predominantly serves the Repair, Maintenance and Improvement (“RMI”) markets, with relatively low exposure to the new construction market.

Ferguson operates 1,491 branches serving all 50 states with approximately 27,000 associates. The branches are served by 10 distribution centres, providing same-day and next-day product availability, a key competitive advantage and an important requirement for customers.

We operate nine strategic business units in the USA providing a broad range of plumbing and heating products and solutions delivered through specialist sales associates, counter service, showroom consultants and e-commerce.

Each strategic business unit provides a different customer offering, with the majority predominantly serving trade customers. Each business unit supports differentiated customer types and therefore provides bespoke services and requirements. Each has its own set of competitors that range from large national companies, including trade sales by large home improvement chains, to small, privately owned distributors. In line with the Group’s strategy the business aims to strengthen its position in existing and adjacent markets through bolton acquisitions.

9

Business units

1,491

Branches

10

Distribution centres

27,000

Associates (approximately)

Our nine strategic business units

Residential Trade

Serves the residential RMI and new construction. sectors with a large proportion of sales through the branch counters. It provides plumbing and sanitary supplies, tools, repair parts and bathroom fixtures to plumbing contractors.

20%

of total US revenue

Commercial

Provides commercial plumbing and mechanical contractors with products and services including bidding and tendering support and timeline planning to assist with their construction projects.

15%

of total US revenue

Facilities Supply

Provides products, services and solutions to enable reliable maintenance of commercial facilities across multiple RMI markets including multi-family properties, government agencies, hospitality, education and healthcare.

of total US revenue

Residential Showroom

Operates a national network of 277 showrooms, serving consumers and trade customers. Showrooms display bathroom, kitchen and lighting products and assist customers by providing advice and project management services for their home improvement projects.

14%

of total US revenue

eBusiness

Sells home improvement products directly to consumers and trade customers online through various websites. The primary brand is Build.com and the business uses the same distribution network as the trade businesses.

of total US revenue

HVAC

Distributes heating, ventilation, air conditioning (“HVAC”) and refrigeration equipment, parts and supplies to specialist contractors in the residential and commercial markets for repair and replacement.

of total US revenue

Fire and Fabrication

Fabricates and supplies fire protection products, fire protection systems and bespoke fabrication services to commercial contractors for new construction projects.

of total US revenue

Waterworks

Distributes pipes, valves and fittings (“PVF”), hydrants, meters and related water management products alongside related services including water line tapping and pipe fusion.

17%

of total US revenue

Industrial

Supplies PVF and industrial maintenance, repair and operations ("MRO") specialising in delivering automation, instrumentation, engineered products and turn-key solutions. Also provides supply chain management solutions.

of total US revenue

A more focused business

Residential Showroom

14%

of total US revenue

eBusiness

of total US revenue

HVAC

Distributes heati ng, ventilation, air conditioning (“HVAC”) and refrigeration equipment, parts and supplies to specialist contractors in the residential and commercial markets for repair and replacement.

of total US revenue