13th Jun 2019 08:35
(Alliance News) - Funds managed by Trian Investors Management LLC have taken a stake worth GBP736 million in Ferguson PLC, Trian Investors 1 Ltd said Thursday.
Ferguson is a FTSE 100 plumbing and heating products firm. Shares were 5.5% higher in early trade at 5,602.10 pence each, making it the best performer in the large cap index and giving it a market capitalisation of around GBP12.99 billion.
Trian has taken a 6.0% stake in the company, saying: "Trian believes Ferguson is an attractive business that trades at a discount to comparable US peers.
"Trian has contacted members of Ferguson's management team and looks forward to working with them to explore and implement initiatives it believes can create long-term shareholder value."
Trian could increase or decrease its investment over time, it said.
On Monday, Ferguson reported a 6.2% rise in revenue for its third quarter ended April to USD5.27 billion, with organic growth 2.3%. Trading profit was up 2.3% to USD359 million.
The company also started a USD500 million buyback programme, to take place over the next 12 months.
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