8th Nov 2007 07:01
Wolseley PLC08 November 2007 NEWS RELEASE 8 November 2007 Wolseley plc Acquisitions Update £84 million spent on five acquisitions 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 £84 million. In a full year, these bolt-on acquisitions areexpected to add approximately £109 million to total revenue. Goodwill andintangible assets related to these acquisitions is estimated to be around £50million. Details of the latest acquisitions are as follows: North America On 1 October 2007, Stock Building Supply ("Stock") acquired ArchitecturalBuilding Supply Company ("ABS") from members of the Tolboe and Krajeskifamilies. ABS is a fabricator, distributor and installer of commercial doors,commercial hardware and access control devices for commercial and institutionalprojects operating from one facility in Utah and two in Idaho. In the year ended31 December 2006, ABS had revenue of $36.0 million (£17.3 million) and grossassets of $9.0 million (£4.3 million) at that date. On 29 October 2007, Stock acquired certain assets of Jacobi Hardware Co., Inc.("Jacobi") from Walter G. Craven, Anne Craven, Walter B. Craven and Mary AnnMoldenhauer. Jacobi is a fabricator, distributor and installer of commercialdoors, commercial hardware and access control devices for commercial andinstitutional projects, based in Wilmington, North Carolina. In the year ended31 December 2006, Jacobi had revenue of $3.3 million (£1.6 million) and grossassets of $0.4 million (£0.2 million) at that date. These two acquisitions are in line with Stock's strategy of increasing itspresence in the Commercial and Industrial market. On 5 November 2007, Stock acquired the assets of KBC Construction, LLC ("KBC")from Keith Cheshire and George Cline. KBC is a turn-key framer and wall panelmanufacturer located in Albuquerque, New Mexico. In the year ended 31 December2006, KBC had revenue of $16.6 million (£8.0 million) and gross assets of $2.9million (£1.4 million) at that date. This acquisition compliments Stock'sexisting businesses in the Albuquerque area, enabling it to provide a completerange of added value services to its customers. On 5 November 2007, Ferguson acquired the inventory of J.D's Wholesale Plumbing& Supply ("J.D's") from Linda F. DiMuccio. J.D's is plumbing distributoroperating from a single location in Pagosa Springs, south west Colorado. In theyear ended 31 December 2006, J.D's had revenue of $0.7 million (£0.4 million)and gross assets of $0.5 million (£0.3 million) at that date. Europe On 6 August 2007 Wolseley France announced that it had signed an agreement,conditional upon obtaining French competition clearance, to acquire SofipartsSAS. The offer has been approved by the French competition authority andcompletion subsequently took place on 2 November 2007. Sofiparts designs,engineers and assembles roof trusses operating from nineteen production sitesacross France. In the year ended 31 December 2006, Sofiparts had revenue of€121.4 million (£81.5 million) and gross assets of €36.6 million (£24.5 million)at that date. The acquisition of Sofiparts is in line with Wolseley France'sstrategy to move into the truss assembly market and further increase itspresence in the new residential sector. The divisional split of the total acquisition spend to date for the year ending31 July 2008 is: Division No. of Acquisitions Spend £ Million Europe 3 79North America 7 91TOTAL ACQUISITION SPEND 10 170 Chip Hornsby, Group Chief Executive of Wolseley said: "I am pleased to announce these acquisitions. They are excellent businesses thatbroaden our product and geographic coverage and support our strategy of growingthe business through acquisition and organic growth." 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 FenwickKate Miller Exchange Rates The following exchange rate has been used for the acquisitions noted above:£1 = $2.08, £1 = €1.49 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 2007 was approximately £16.2 billion and trading profit was£877 million. Wolseley has around 79,000 employees operating in 28 countriesnamely: Austria, Barbados, Belgium, Canada, Croatia, Czech Republic, Denmark,Finland, France, Greenland, Hungary, Ireland, Italy, Luxembourg, Mexico, Norway,Panama, Poland, Puerto Rico, Romania, San Marino, Slovakia, Sweden, Switzerland,The Netherlands, Trinidad & Tobago, UK, USA. Wolseley is listed on the Londonand New York Stock Exchanges (LSE: WOS, NYSE: WOS) and is in the FTSE 100 indexof listed companies. -- ENDS -- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Ferguson