20th Sep 2006 07:01
Wolseley PLC20 September 2006 Wolseley plc Acquisitions update £22 million spent on three acquisitions taking total for year ending 31 July 2007 so far to £49 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 three further acquisitions for an aggregateconsideration of £22 million. In a full year, these acquisitions are expected toadd approximately £30 million in additional revenue. Since the beginning of the financial year on 1 August 2006, a total of sixbusinesses in Europe and North America have been acquired for an aggregateconsideration of approximately £49 million. These six acquisitions are expectedto add approximately £91 million to Group revenue in a full year. Goodwill andintangible assets related to these acquisitions is estimated to be around £29million. These totals do not include the acquisition of DT Group (formerly knownas Danske Traelast) which was announced on 24 July 2006 and is expected tocomplete in the next eight days. North America------------- On 21 August 2006, Ferguson acquired the assets of United Automatic HeatingSupply Ltd ("United Automatic") from James Haskell. United Automatic is an Ohiobased distributor of heating ventilation and air conditioning equipment andsupplies. In the year ended 31 December 2005, United Automatic had revenue of$29.4 million (£15.7 million) and gross assets of $5.4 million (£2.9 million) atthat date. Europe------ On 31 August 2006, Brossette acquired Sigmatec SAS ("Sigmatec") from Mr Gournay.Sigmatec is an electrical distributor based in Northern France. In the yearended 31 March 2006, Sigmatec had revenue of €5.6 million (£3.8 million) andgross assets of €0.4 million (£0.3 million) at that date. On 19 September 2006, Wolseley UK acquired Morris Insulation Ltd, Acoustic andThermal Insulation Ltd, Customised Insulation Manufacturers Ltd and ConstructionInsulation Distributors Ltd ("the Insulation Companies") from Rhodes SecuritiesLimited. The Insulation Companies, based in Dublin, are the leading distributorsof insulation materials in the Republic of Ireland. In the year ended 31 August2005, the Insulation Companies had revenue of €15.6 million (£10.5 million) andgross assets of €12.7 million (£8.5 million) at that date. The divisional split of the total acquisition spend since 1 August 2006 is: Division No. of Acquisitions Spend £ Million--------------------------------------------------------------------------Europe 3 20North America 3 29TOTAL 6 49 Chip Hornsby, Group Chief Executive of Wolseley said: "We are delighted to announce these three further acquisitions which will helpus continue to grow our business in Europe and North America. These acquisitionssupport our strategy of growing the business through acquisition and organicgrowth." 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 4900Media: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 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 2005 were approximately £11.3 billion and operatingprofit, before amortisation of acquired intangibles, was £708 million. Wolseleyhas more than 71,000 employees operating in 14 countries namely: UK, USA,France, Canada, Ireland, Italy, The Netherlands, Switzerland, Austria, CzechRepublic, Hungary, Belgium, Luxembourg and Denmark. Wolseley is listed on theLondon and New York Stock Exchanges (LSE: WOS, NYSE: WOS) and is in the FTSE 100index of listed companies. -- ENDS -- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Ferguson