UK-based building materials distributor Wolseley plc has entered into a joint venture of Stock Building Supply with affiliates of U.S.-based The Gores Group LLC. Wolseley will retain a 49% equity interest. One hundred percent of the shares of Stock will be sold to a new joint venture company called NewCo.

Wolseley will hold two board seats in the joint venture. The distributor will continue to be called Stock Building Supply and will be led by the existing Stock management team, including Joe Appelmann as president.
 
A pre-packaged Chapter 11 reorganization plan will facilitate the sale, according to the distributor. This allows for all trade creditors to be paid, and according to Wolseley, will create a "substantially lower cost base." Obligations to …