Wickes to Sell Lumber Unit to Its Managers

Wickes Cos. said Tuesday that it has agreed to sell its Wickes Lumber division to managers of that unit for an undisclosed price. The company’s Builders Emporium stores are not affected by the deal.

The lumber business, founded in 1952, is the oldest of Wickes’ current businesses and a leading merchandiser of lumber and building materials, with more than 225 retail locations nationwide.

Wickes said there are about a dozen Wickes Lumber outlets in California, including stores in Rocklin, Lancaster, Salinas, Modesto, Bakersfield and Petaluma.

Santa Monica-based Wickes put the lumber operations on the block in October, along with its Kayser-Roth Apparel and Kayser-Roth Hosiery companies, and said it expected to receive “substantially more” than the $600-million book value for the three operations.

Proceeds from the sale, expected to be completed next month, are to be used to cut Wickes’ $2-billion debt or to fund acquisitions.

Together, the lumber and two Kayser-Roth operations had sales of $1.8 billion and operating income of about $80 million for Wickes’ fiscal year ended Jan. 31.