11th Sep 2007 07:00
Wolseley PLC11 September 2007 NEWS RELEASE 11 September 2007 Wolseley plc Acquisitions Update £87 million spent on five acquisitions including Ferguson's first entry into New York City Wolseley plc, the world's largest specialist trade distributor of plumbing andheating products to professional contractors and a leading supplier of buildingmaterials, announced today five bolt on acquisitions for an aggregateconsideration of £87 million. In a full year, these bolt-on acquisitions areexpected to add approximately £110 million to total revenue. Goodwill andintangible assets related to these acquisitions is estimated to be around £52million. Details of the latest acquisitions are as follows: North America On 6 August 2007, Stock Building Supply ("Stock") acquired certain assets ofProSource Building Supply, Ltd ("ProSource") from Cary Miles and Tracy Manes.ProSource is a construction services business supplying primarily commercialdoors, trim, hardwood, related speciality products and installation servicesoperating from two facilities in Houston, Texas. In the year ended 31 December2006, ProSource had revenue of $17.2 million (£8.5 million) and gross assets of$3.2 million (£1.6 million) at that date. This acquisition is in line withStock's strategy to expand its presence in the commercial and industrial market. On 13 August 2007, Ferguson acquired Western Air Systems & Controls, Inc.("Western Air") from Glenn Woodward. Western Air is the exclusive Trane HVACdistributor for the states of California (excluding the San Francisco Bay area)and Nevada, operating from two facilities in California and one in Nevada. Inthe year ended 31 December 2006, Western Air had revenue of $59.6 million (£29.6million) and gross assets of $13.5 million (£6.7 million) at that date. On 27 August 2007, Ferguson acquired Davidson Pipe Company, Inc. ("Davidson")from the Davidson and Krueger families and trustees. Davidson is a pipes, valvesand fittings (PVF) distributor supplying the New York metropolitan market. Inthe year ended 30 September 2006, Davidson had revenue of $125.8 million (£62.6million) and gross assets of $49.8 million (£24.8 million) at that date. Europe On 24 August 2007, Wolseley UK acquired T&R Electrical Wholesalers Ltd ("T&R")from the Bissix family. T&R is an electrical wholesaler, serving public andelectrical contractors in the residential, commercial and industrial sectors,operating from four sites in West London. T&R will give Wolseley UK's existingelectrical distribution brand, Electric Center, additional coverage in an areawhere it is currently under represented. In the year ended 30 June 2007, T&R hadrevenue of £9.5 million and gross assets of £1.6 million at that date. On 16 August 2007, DT Group acquired Proaktiv Bygglogistik i Stockholm AB("PBS") from Michael Palmlof AB, Mikael Brohall, Pia Svensson, FredrikPalmlof, Jan Birkebo and Christer Gustavsson. PBS is a newly formed buildingmaterials company, established by experienced industry professionals, basedsouthwest of Stockholm. The divisional split of the total acquisition spend to date for the year ending31 July 2008 is: Division No. of Acquisitions Spend £ Million Europe 2 £9mNorth America 3 £78mTOTAL ACQUISITION SPEND 5 £87m Chip Hornsby, Group Chief Executive of Wolseley said: "I am delighted that we have finally been able to enter the New York Cityindustrial and commercial market and complete four further acquisitions towardsour target for bolt-ons of £450 million for the year to 31 July 2008. They areexcellent businesses that broaden our product and geographic coverage andsupport our strategy of growing the business through acquisition and organicgrowth." ENQUIRIES: Guy Stainer +44 118 929 8744Group Investor Relations Director +44 7739 778187 John English +1 513 771 9000Vice President, Investor Relations, North America +1 513 328 4900 Brunswick +44 20 7404 5959Andrew FenwickSophie Brand Exchange Rates The following exchange rate has been used for the acquisitions noted above:£1 = $2.01, £1 = SEK13.85 Certain statements included in this announcement may be forward-looking and mayinvolve risks, assumptions and uncertainties that could cause actual results todiffer materially from those expressed or implied by the forward lookingstatements. Forward-looking statements include, without limitation, projectionsrelating to results of operations and financial conditions and the Company'splans and objectives for future operations including, without limitation,discussions of the Company's business and financial plans, expected futurerevenues and expenditures, investments and disposals, risks associated withchanges in economic conditions, the strength of the plumbing and heating andbuilding materials market in North America and Europe, fluctuations in productprices and changes in exchange and interest rates. All forward-lookingstatements in this respect are based upon information known to the Company onthe date of this announcement. The Company undertakes no obligation to publiclyupdate or revise any forward-looking statement, whether as a result of newinformation, future events or otherwise. It is not reasonably possible toitemise all of the many factors and events that could cause the Company'sforward-looking statements to be incorrect or that could otherwise have amaterial adverse effect on the future operations or results of the Company. Notes to Editors Wolseley plc is the world's largest specialist trade distributor of plumbing andheating products to professional contractors and a leading supplier of buildingmaterials in North America, the UK and Continental Europe. Group revenue for theyear ended 31 July 2006 was approximately £14.2 billion and operating profit,before amortisation of acquired intangibles, was £882 million. Wolseley hasaround 78,000 employees operating in 28 countries namely: UK, USA, France,Canada, Ireland, Italy, The Netherlands, Switzerland, Austria, Czech Republic,Hungary, Belgium, Luxembourg, Denmark, Sweden, Finland, Norway, Slovak Republic,Poland, Romania, Croatia, San Marino, Panama, Puerto Rico, Trinidad & Tobago,Mexico, Barbados and Greenland. Wolseley is listed on the London and New YorkStock Exchanges (LSE: WOS, NYSE: WOS) and is in the FTSE 100 index of listedcompanies. -- ENDS -- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Ferguson