10th Mar 2008 07:00
Wolseley PLC10 March 2008 NEWS RELEASE 10 March 2008 Wolseley plc Acquisitions Update £33 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 £33 million. In a full year, these bolt-on acquisitions areexpected to add approximately £45 million to total revenue. Goodwill andintangible assets related to these acquisitions is estimated to be around £23million. Since the beginning of the financial year on 1 August 2007, a total of15 bolt-on acquisitions in Europe and North America have been completed for anaggregate consideration of approximately £203 million. These 15 acquisitions areexpected to add approximately £263 million to Group revenue in a full year andwill be beneficial to the Group's trading margin in the current financial year. Details of the latest acquisitions are as follows: North America On 3 December 2007, Ferguson acquired the assets of C.B. Group, Inc. trading asJC Plumbing Supply ("JC Plumbing") from James Cheng, John Cheng and Hup Cheng.JC Plumbing is a distributor operating from two facilities in San Francisco. Theacquisition of JC Plumbing provides entry into the plumbing fixtures market inthe heart of San Francisco. In the year ended 31 December 2006, JC Plumbing hadrevenue of $4.4 million (£2.2 million) and gross assets of $1.1 million (£0.5million) at that date. On 1 February 2008 Stock Building Supply acquired certain assets of PrecisionDoors & Hardware, LLC. ("Precision Doors") from Fred Sachs, Mike Iwanicki andSteve Thodos. Precision Doors specialises in sales, installation, service andrepair of commercial and industrial doors, frames, door hardware, washroomaccessories and control systems operating from five locations in the WashingtonD.C. metro area. In the year ended 31 December 2006, Precision Doors had revenueof $43.3 million (£21.8 million) and gross assets of $8.6 million (£4.3 million)at that date. On 19 February 2008 Ferguson acquired the assets of Mastercraft Cabinets, Inc.("Mastercraft") from Kurt Wurstle and DaVida Wurstle. Mastercraft is a cabinetdistributor operating from a single facility in Naples, Florida. In the yearended 31 December 2006, Mastercraft had revenue of $5.1 million (£2.6 million)and gross assets of $0.05 million (£0.03 million) at that date. Europe On 28 November 2007 Wolseley Eastern Europe a.s. signed an agreement,conditional upon obtaining Slovak competition clearance, to acquire Gama Myjavas.r.o ("Gama"). The offer has now been approved by the Slovak competitionauthority and completion subsequently took place on 3 March 2008. Gama is aplumbing, heating and sanitary ware distributor operating from eight branches inSlovakia and five branches in the Czech Republic. In the year ended 31 December2006, Gama had consolidated revenue of SKK741.6million (£16.0 million) and grossassets of SKK214.0 million (£4.6 million) at that date. On 29 February 2008 Wolseley UK acquired PFC Corofil Firestops Ltd and itssubsidiaries ("PFC") from Geoff Ashling. PFC is a distributor of a wide range ofspecialist passive fire protection products operating from a single location inSurrey. In the year ended 31 March 2007, PFC had revenue of £1.9 million andgross assets of £0.3 million at that date. The divisional split of the total acquisition spend since 1 August 2007 is: Division No. of Acquisitions Spend £ Million Europe 5 91North America 10 112TOTAL ACQUISITION SPEND 15 203 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: Analysts/Investors: Guy Stainer +44 (0)118 929 8744Group Investor Relations Director +44 (0)7739 778187 John English +1 513 771 9000Vice President, Investor Relations, North America +1 513 328 4900 Media: Mark Fearon +44 (0)118 929 8787Director of Corporate Communications Brunswick +44 (0)20 7404 5959Andrew FenwickKate Miller Exchange Rates The following exchange rates have been used for acquisitions noted above:$1.9856: £1; SKK46.35: £1. 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 27 countriesnamely: Austria, Barbados, Belgium, Canada, Czech Republic, Denmark, Finland,France, Greenland, Hungary, Ireland, Italy, Luxembourg, Mexico, Norway, Panama,Poland, Puerto Rico, Romania, San Marino, Slovakia, Sweden, Switzerland, TheNetherlands, Trinidad & Tobago, UK, USA. Wolseley is listed on the London andNew York Stock Exchanges (LSE: WOS, NYSE: WOS) and is in the FTSE 100 index oflisted companies. -- ENDS -- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Ferguson