5th Jul 2007 07:00
Wolseley PLC05 July 2007 NEWS RELEASE 5 July 2007 Wolseley plc Acquisitions Update£15 million spent on five acquisitions taking total for bolt on acquisitions for the year to date to £374 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 five further bolt on acquisitions for an aggregateconsideration of £15 million. In a full year, these bolt on acquisitions areexpected to add approximately £28 million to total revenue. Since the beginning of the financial year on 1 August 2006, a total of 41 bolton acquisitions in Europe and North America have been completed for an aggregateconsideration of approximately £374 million. These 41 acquisitions are expectedto add approximately £656 million to Group revenue in a full year. Goodwill andintangible assets related to these acquisitions is estimated to be around £258million. In addition, on 25 September 2006, Wolseley plc completed theacquisition of DT Group (formerly known as Danske Traelast) for an estimatedconsideration of £1,339 million, which brings aggregate acquisition spend forthe year to £1,713 million. Details of the latest five acquisitions are as follows: North America On 14 May 2007, Wolseley Canada acquired Maverick Supplies Limited ("Maverick")from Kathy Davies, Rick Davies and Bergum Equities Inc. Maverick is a wholesaledistributor of pipe, valves, fittings and industrial supplies to oil and naturalgas companies and oilfield contractors with six locations in south centralAlberta. In the year ended 30 September 2006, Maverick had revenue of CAD$17.5million (£8.3 million) and gross assets of CAD$2.0 million (£0.9 million) atthat date. On 2 July 2007, Stock Building Supply acquired certain assets of Hollow MetalSpecialists, Inc. ("HMS") from Patricia, Michael, Patrick and Timothy Hilliard.HMS is a fabricator, distributor and installer of commercial doors, hardware andaccess control devices for commercial and institutional projects, based inSarasota Florida. In the year ended 31 December 2006, HMS had revenue of $15.4million (£7.7 million) and gross assets of $1.9 million (£1.0 million) at thatdate. Europe On 1 June 2007, Wolseley France acquired Etablissements Lebrun SAS ("Lebrun")from Jean-Claude Lebrun, Anne-Sophie Thieffry, Marie-Charlotte Lebrun andEmerantine Lebrun. Lebrun is a generalist builders' merchant based in onelocation south east of Paris. In the year ended 31 December 2006, Lebrun hadtotal revenue of €2.8 million (£1.9 million) and gross assets of €0.5 million(£0.3 million) at that date. On 1 June 2007, DT Group acquired H.R. Sandvold AS ("Sandvold") from HSInvestering AS and Bukkevik Invest AS. Situated in Haugesund, on the west coastof Norway, Sandvold is a plumbing wholesaler and in recent years has extendedits product range into kitchens, bathrooms and bathroom accessories. Thisacquisition will enable DT Group to expand its lightside product offering tocomplement its extensive heavyside range. In the year ended 31 December 2006,Sandvold had revenue of NOK58.5 million (£4.9 million) and gross assets ofNOK13.3 million (£1.1 million) at that date. On 22 June 2007, DT Group acquired A/S Baagoe & Riber ("Baagoe & Riber") fromBaagoe & Riber Holding A/S, Hans Jorgen Riber, Ulla Riber, Susanne Riber, JensPeter Riber and Marni Holmquist. Baagoe & Riber, a builders merchant, is basedin Svendborg in the south of Funen, the second largest island in Denmark. In theyear ended 31 December 2006, Baagoe & Riber had revenue of DKK51.8 million (£4.7million) and gross assets of DKK20.9 million (£1.9 million) at that date. The divisional split of the total acquisition spend since 1 August 2006 is: Division No. of Acquisitions Spend £ Million Europe 20 91North America 21 283TOTAL BOLT ONS 41 374Acquisition of DT Group 1 1,339TOTAL ACQUISITION SPEND 42 1,713 Chip Hornsby, Group Chief Executive of Wolseley said: "We are pleased to announce these five bolt on acquisitions which continue tobuild on our strategy of growth through acquisitions and organic means. Theacquisition of Sandvold introduces a specialist plumbing distributor into DTGroup and HMS helps Stock Building Supply develop their commercial salesinitiative." 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 FenwickNina Coad Exchange Rates The following exchange rate has been used for the acquisitions noted above:£1 = $2.00, £1 = CAD$2.10, £1 = €1.47, £1 = NOK11.92, £1 = DKK11.05 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 2006 was approximately £14.2 billion and operating profit,before amortisation of acquired intangibles, was £882 million. Wolseley hasaround 78,000 employees operating in 28 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, Barbados and Greenland. Wolseley is listed on the London and New YorkStock Exchanges (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:
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