24th Apr 2006 07:01
Wolseley PLC24 April 2006 NEWS RELEASE24 April 2006 Wolseley plc Acquisition update £42 million spent on four further acquisitions taking total for the year so far to a record £665 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 four further acquisitions for an aggregateconsideration of £42 million. In a full year, these four acquisitions areexpected to add approximately £93 million in additional revenue. Since the beginning of the financial year on 1 August 2005, a total of 39businesses in Europe and North America have been acquired for an aggregateconsideration of approximately £665 million. These 39 acquisitions are expectedto add approximately £1,089 million to Group revenue in a full year. Goodwilland intangible assets related to these acquisitions is estimated to be around£427 million. These totals do not include the recommended offer for Brandon Hireplc which was announced on 28 March 2006. North America On 11 April 2006, Ferguson Enterprises, Inc. ("Ferguson") acquired PipeProducts, Inc. ("Pipe Products") a pipe distributor, from Steve Tino and SteveKushner. Pipe Products operates six facilities across Ohio, Kentucky and Indianaand conducts business in three principal market segments: mechanical/industrial,fire fabrication and process chemical/petroleum. In the year ended 30 April 2005Pipe Products had revenue of $60.5 million (£34.6 million) and gross assets of$12.4 million (£7.1 million) at that date. On 17 April 2006, Stock Building Supply ("Stock") acquired the fixed assets andinventory of the wholesale division ("Wholesale Division") of Davis Homes, LLC("Davis Homes"). Based in Indianapolis, Wholesale Division is the only supplierof roof trusses, wall panels, door assemblies, framing lumber, windows, subflooring, trim, roofing and sheathing to Davis Homes. As part of theacquisition, Stock will enter into a supply agreement with Davis Homes. In theyear ended 31 December 2005 Wholesale Division had revenue of $19.4 million(£11.1 million) and gross assets of $1.7 million (£1.0 million) at that date. Europe On 19 April 2006, Wolseley UK acquired K&R Building Supplies Limited ("K&R") abuilders' merchant, from Kay Clackworthy and Peter Clackworthy. K&R operatesfrom a one acre site close to the centre of Penzance, Cornwall. In the yearended 31 March 2005 K&R had revenue of £3.0 million and gross assets of £100,000at that date. On 21 April 2006 Wolseley UK acquired AC Electrical Limited ("AC Electrical") anelectrical wholesalers, from John Kelly, Michael Kelly, Lydia Kelly, David Belland Richard Rose. AC Electrical targets small to medium sized electricalcontractors. It operates from 40 branches with geographic coverage stretchingsouthwards from Leeds and Manchester complementing the William Wilson branches,acquired in November 2005, which are located in Scotland and the north ofEngland. In the year ended 31 March 2005 AC Electrical had revenue of £44.4million and gross assets of £7.8 million at that date. Following thisacquisition, Wolseley UK has 66 stand alone electrical branches. The divisional split of the total acquisition spend since 1 August 2005 is: Division No. of Acquisitions Spend £ Million------------------------------------------------------------------------Europe 16 308North America 23 357 TOTAL 39 665 Charlie Banks, Group Chief Executive of Wolseley said: "We are delighted to announce these new acquisitions which will furtherstrengthen our presence in Europe and North America. They support our strategyof growing the business through increased product and geographic diversity toprovide a platform for future organic growth." 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 Brunswick 020 7404 5959 Andrew FenwickNina Coad Exchange Rates The following exchange rate has been used for the acquisition noted above:£1 = $1.75. 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 and a leading supplier of building materials to professionalcontractors in North America, the UK and Continental Europe. Group revenues forthe year ended 31 July 2005 were approximately £11.3 billion and operatingprofit, before amortisation of acquired intangibles, was £708 million. Wolseleyhas more than 65,000 employees operating in 14 countries namely: UK, USA, France, Canada, Ireland, Italy, The Netherlands, Switzerland, Austria, Czech Republic, Hungary, Belgium, Luxembourg and Denmark. Wolseley is listed on the London and New York Stock Exchanges (LSE: WOS.L, NYSE: WOS) and is in the FTSE 100 index of listed companies. -- ENDS -- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Ferguson