2nd Nov 2006 07:00
Wolseley PLC02 November 2006 NEWS RELEASE 2 November 2006 Wolseley plc Acquisitions update £61 million spent on six bolt on acquisitions taking total for bolt on acquisitions for the year so far to £221 million Wolseley plc, the world's largest specialist trade distributor of plumbing andheating products to professional contractors and a leading supplier of buildingmaterials, announced today six further bolt on acquisitions for an aggregateconsideration of £61 million. In a full year, these bolt on acquisitions areexpected to add approximately £102 million in additional revenue. Since the beginning of the financial year on 1 August 2006, a total of sixteenbolt on acquisitions in Europe and North America have been completed for anaggregate consideration of approximately £221 million. These sixteenacquisitions are expected to add approximately £340 million to Group revenue ina full year. Goodwill and intangible assets related to these acquisitions isestimated to be around £42 million. In addition, on 25 September 2006, Wolseleyplc completed the acquisition of DT Group (formerly known as Danske Traelast)for an estimated consideration of £1,353 million which brings aggregateacquisition spend for the year to £1,573 million. North America On 16 October 2006, Ferguson acquired Gulf Refrigeration Supply Inc. ("Gulf")from Thomas K Holt and Douglas L Menard. Gulf is a distributor of HVACequipment, parts and supplies based in Tampa, Florida. In the year ended 30 June2006, Gulf had revenue of $54.9 million (£29.2 million) and had gross assets of$8.8 million (£4.7 million) at that date. On 16 October 2006, Ferguson acquired the assets of Kandall Fabricating & SupplyCorporation KF Industries, LLC ("Kandall") from David Kandall and PatrickConklin. Kandall is a fabricator and distributor of fire sprinkler systems basedin Passaic, New Jersey. In the year ended 31 December 2005, Kandall had revenueof $23.2 million (£12.4 million) and had gross assets of $9.7 million (£5.2million) at that date. On 16 October 2006, Stock Building Supply ("Stock") acquired the assets of LeeWindow & Door Company ("Lee") from Peter Farren. Lee is a distributor andinstaller of commercial and high end residential windows located in Sanford,North Carolina. In the year ended 31 December 2005, Lee had revenue of $8.3million (£4.4 million) and had gross assets of $0.9 million (£0.5 million) atthat date. On 23 October 2006, Stock acquired Perfection Truss Company, Inc ("Perfection")from Jim Stafford. Perfection is the leading truss manufacturer in central NewMexico, based in Albuquerque. In the year ended 31 March 2006, Perfection hadrevenue of $6.4 million (£3.4 million) and had gross assets of $2.0 million(£1.1 million) at that date. Europe On 31 October 2006, WOODCOTE - stavebni materialy, a.s. ("Woodcote") wasacquired from Neville Parry and Telor Holdings Limited. Woodcote has 37 outletsand operates in the Czech Republic, Slovak Republic, Hungary, Poland, Romaniaand Croatia. Woodcote is a general builders' merchant and also imports anddistributes doors, ceilings, flooring, baths, insulation and dry lining toprimarily professional contractors. In the year ended 31 December 2005, Woodcotehad revenue of CZK1,844 million (£43.7 million) and had gross assets of CZK211million (£5.0 million) at that date. On 1 November 2006, DT Group acquired Hjalmars Tra AB ("Hjalmars") fromLars-Erik Bengtsson, Sven Enoch and Evan Thorsson. Hjalmars is a heavysidebuilder's merchant with two locations in Stenungsund and Alvangen, Sweden. Inthe year ended 31 December 2005, Hjalmars had revenue of SEK117.0 million (£8.5million) and had gross assets of SEK32.8 million (£3.6 million) at that date. The divisional split of the total acquisition spend since 1 August 2006 is: Division No. of Acquisitions Spend £ Million Europe 7 57North America 9 164TOTAL BOLT ONS 16 221Acquisition of DT Group 1 1,353TOTAL ACQUISITION SPEND 17 1,574 Chip Hornsby, Group Chief Executive of Wolseley said: "We are pleased to announce these six bolt on acquisitions which furtherstrengthen our existing business in Europe and North America. In particular,Woodcote extends our reach in Hungary and the Czech Republic, and provides uswith an entry point into the new European growth markets of the Slovak Republic,Poland, Romania and Croatia." ENQUIRIES: Investors/Analysts:Guy Stainer 0118 929 8744Head of Investor Relations 07739 778187 John English 001 513 771 9000Director, Investor Relations North America 001 513 328 4900 Media:Penny Studholme 0118 929 8886Director of Corporate Communications 07860 553834 Brunswick 020 7404 5959Andrew FenwickNina Coad Exchange Rates The following exchange rate has been used for the acquisitions noted above:£1 = $1.88, £1 = €1.49, £1 = CZK42.25, £1 = SEK13.75 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 revenues forthe year ended 31 July 2006 were approximately £14.2 billion and operatingprofit, before amortisation of acquired intangibles, was £882 million. Wolseleyhas more than 79,000 employees operating in 27 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 and Barbados. Wolseley is listed on the London and New York StockExchanges (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