Wolseley (WOSYY) , owner of the Ferguson plumbing merchants, sold a majority share in its Swiss assets to a local firm Tuesday.

It has agreed to merge its Swiss plumbing and heating business with Walter Meier AG, a heating and HVAC specialist in the Alpine country.

Wolseley will receive Sfr 117.8 million ($118.6 million) after the deal and will hold a 39.2% stake in the combined business, while Walter Meier will issue new shares to fund the deal.

Walter Meier, the largest operator of plumbing supplies stores in Switzerland, also beat expectations for full year sales and net income when it reported on Tuesday morning.

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Wolseley stock was down 0.20% to 5,000 pence each by 09:00 GMT while Walter Meier shares rose by more than 6%, to Sfr 41.40, in Zurich.

Paradoxically, Wolseley is a Swiss headquartered firm that is listed in London, but draws the bulk of its revenue and trading profit from its American business. Ferguson is the largest seller of plumbing and plastic piping products to construction contractors in the U.S.

It accounted for 65% of sales in the last full year and around 80% of trading profit. The unit is a frequent acquirer of small merchants and distributors.

Tuesday's asset sale comes amid a broader restructuring of the group as the board attempts to address lackluster trading conditions in the U.K. and Europe.

For the three months ending Oct 31, Wolseley reports an 8.9% increase in U.S. revenues, to £2.94 billion ($3.6 billion), at constant exchange rates while the top line for everywhere else shrank by 1.8% to £1.4 billion.

Wolseley earns around 15% of its top line from the U.K. It said back in July that it will restructure its U.K. branch network in order to boost shareholder returns and address inefficiencies in the way that it does business in Britain.