20th Dec 2006 07:00
Wolseley PLC20 December 2006 NEWS RELEASE 20 December 2006 Wolseley plc Acquisitions update£27 million spent on six acquisitions taking total for bolt on acquisitions for the year so far to £262 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 £27 million. In a full year, these bolt on acquisitions areexpected to add approximately £57 million in additional revenue. Since the beginning of the financial year on 1 August 2006, a total of twentyfive bolt on acquisitions in Europe and North America have been completed for anaggregate consideration of approximately £262 million. These twenty fiveacquisitions are expected to add approximately £444 million to Group revenue ina full year. Goodwill and intangible assets related to these acquisitions isestimated to be around £175 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 £1,615 million. North America On 27 November 2006, Wolseley Canada acquired Hudson Plumbing Supplies Limited("Hudson") from Jim McKendry and Kevin Grant. Hudson is a distributor ofplumbing parts operating from three locations in the Greater Toronto area. Inthe year ended 31 December 2005, Hudson had revenue of CAD$6.7 million (£2.9million) and gross assets of CAD$2.7 million (£1.2 million) at that date. On 4 December 2006, Ferguson acquired the assets of Onda-Lay Pipe & Rental, Inc.("Onda-Lay") from a large number of individual shareholders. Onda-Lay operatesfrom three locations, Midland (Texas), Hobbs (New Mexico) and Damascus (Arkansas) distributing polyethylene pipe products, fibreglass pipe products andproviding installation services. In the year ended 31 December 2005, Onda-Layhad revenue of $38.3 million (£19.5 million) and gross assets of $6.7 million(£3.4 million) at that date. On 11 December 2006, Ferguson acquired T'N'T Sales, Inc. trading as Page'sAppliances ("Pages") from Terry Page and Tom Styer. Pages is a leadingindependent appliance dealer operating from Albuquerque and Santa Fe, CentralNew Mexico. In the year ended 30 June 2006, Pages had revenue of $10.3 million(£5.2 million) and gross assets of $0.8 million (£0.4 million) at that date. On 15 December 2006, Stock Building Supply ("Stock") acquired Tonto VerdeConstruction, Inc. and Precision Forest Products, LLC ("Tonto") from Ted Brooksand Eric Mitchell. Tonto is a framing contractor supplying the Phoenix, Arizonaresidential housing market. This is Stock's first entry into the Phoenix housingmarket which has consistently been one of the top five housing markets, asmeasured by the number of housing starts, over the last few years and isexpected to maintain this position for the foreseeable future. In the year ended31 December 2005, Tonto had revenue of $37.3 million (£19.0 million) and grossassets of $0.7 million (£0.4 million) at that date. Europe On 1 September 2006, PBM acquired Atout K-RO ("Atout") from Richard Mas and AlexLucas. Atout is a specialist ceramic tiles distributor operating from a singlelocation in Perpignan, Southern France. In the year ended 31 March 2006, Atouthad revenue of €9.4 million (£6.3 million) and gross assets of €0.3 million(£0.2 million) at that date. On 1 December 2006, PBM acquired Etablissments Pochon Felix ("Pochon") fromSocamo. Pochon is a generalist builders' merchant based in the Rhone Alpesregion of France and is run from two outlets, Bourg en Bresse and Pont de Vaux.In the year ended 31 March 2006, Pochon had revenue of €5.7 million (£3.8million) and gross assets of €1.0 million (£0.7 million) at that date. The divisional split of the total acquisition spend since 1 August 2006 is: Division No. of Acquisitions Spend £ Million Europe 11 66North America 14 196TOTAL BOLT ONS 25 262Acquisition of DT Group 1 1,353TOTAL ACQUISITION SPEND 26 1,615 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. Bolt-onacquisitions like these continue to be an important part of our successfulgrowth strategy." ENQUIRIES: Guy Stainer 0118 929 8744Head of Investor Relations 07739 778187 John English 001 513 771 9000Director, Investor Relations North America 001 513 328 4900 Brunswick 020 7404 5959Andrew FenwickNina Coad Exchange Rates The following exchange rate has been used for the acquisitions noted above:£1 = $1.96, £1 = €0.67, £1 = CAD$2.27 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 around 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