15th Aug 2006 07:01
Wolseley PLC15 August 2006 NEWS RELEASE 15 August 2006 Wolseley plc Acquisitions update £36 million spent on six acquisitions taking total for the year ended 31 July 2006 to a record £910 million and for year ending 31 July 2007 so far to £26 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 acquisitions for an aggregateconsideration of £36 million. Three of these acquisitions were completed in theyear ended 31 July 2006 and three were completed in the financial yearcommencing 1 August 2006. In a full year, these acquisitions are expected to addapproximately £90 million in additional revenue. In the financial year ended 31 July 2006, three additional businesses in Europeand North America were acquired for an aggregate consideration of approximately£10 million. These acquisitions are expected to add approximately £29 million toGroup revenue in a full year. Since the beginning of the financial year on 1August 2006, three businesses in Europe and North America have been acquired foran aggregate consideration of approximately £26 million. These acquisitions areexpected to add approximately £61 million to Group revenue in a full year.Goodwill and intangible assets related to these acquisitions is estimated to bearound £15 million. These totals do not include the acquisition, conditionalonly upon regulatory approval, to acquire DT Group (formerly known as DanskeTraelast) which was announced on 24 July 2006. North America On 17 July 2006, Stock Building Supply acquired certain assets of MartinArchitectural Products, Inc. ("Martin") from Mike Martin. Martin is a fabricatorand supplier of architectural products for commercial and institutional projectsbased in North Carolina. In the year ended 31 December 2005, Martin had revenueof $26.4 million (£13.9 million) and gross assets of $6.5 million (£3.4 million)at that date. On 1 August 2006, Ferguson acquired the assets of Water Works Supplies, Inc.("WWSI") from James Taylor. WWSI distributes water works products and is basedin Southern Indiana, Central Eastern Kentucky and Southern Illinois. In the yearended 30 June 2005, WWSI had revenue of $29.5 million (£15.5 million) and grossassets of $5.9 million (£3.1 million) at that date. On 1 August 2006, Ferguson acquired substantially all of the assets of PalermoSupply Co. Inc., Palermo Plumbing Center, Inc., and Palermo Wholesale Supply,Inc. ("Palermo") from those companies. Palermo is a plumbing and heatingdistributor in Northern New Jersey and the greater New York areas. In the yearended 31 December 2005, Palermo had revenue of $82.9 million (£43.6 million) andgross assets of $17.4 million (£9.2 million) at that date. Europe On 1 July 2006, PBM acquired Depont Materiaux from Jean-Louis and Nadine Depont.Depont Materiaux is a distributor of heavyside products with one branch inChateauvillain, in the East of France. In the year ended 30 September 2005,Depont Materiaux had revenue of €0.5 million (£0.3 million) and gross assets of€33,000 (£22,297) at that date. On 7 July 2006, Centratec acquired Marmon Keystone Anbuma ("MK") from EricHuysentrijt. MK is a distributor of stainless and carbon steel pipe in Belgium,France and the Netherlands and operates from three branches across Belgium. Inthe year ended 31 March 2006, MK had revenue of €21.2 million (£14.3 million)and gross assets of €7.5 million (£5.1 million) at that date. On 11 August 2006, Wolseley UK acquired Lunts Heath Limited ("Lunt") from RobertPrice and Christopher Price. Lunt is a single branch distributor of building andpaving materials based in Cheshire. In the year ended 31 December 2005, Lunt hadrevenue of £1.7 million and gross assets of £0.5 million at that date. The divisional split of the total acquisition spend for the year ended 31 July2006 is: Division No. of Spend Acquisitions £ Million Europe 22 415North America 31 495TOTAL 53 910 The divisional split of the total acquisition spend since 1 August 2006 is: Division No. of Spend Acquisitions £ Million Europe 1 1North America 2 25TOTAL 3 26 Chip Hornsby, Group Chief Executive of Wolseley said: "We are delighted to announce six further acquisitions which will help uscontinue to grow our business in Europe and North America. Bolt-on acquisitionslike these are an important part of our successful growth strategy. These newcompanies will be integrated quickly into our existing operations and willdeliver value to us from the outset. We have had a record year for acquisitionsin 2006, spending £910 million, and I am pleased to confirm the pipeline for2007 continues to look encouraging." 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 = $1.90, £1 = €1.48 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 70,000 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 andNew York Stock Exchanges (LSE: WOS, NYSE: WOS) and is in the FTSE 100 index oflisted companies. -- ENDS -- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Ferguson