21st Jun 2006 07:00
Wolseley PLC21 June 2006 NEWS RELEASE 21 June 2006 Wolseley plc Acquisitions update£89 million spent on seven further acquisitions taking total for the year so far to a record £900 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 seven further acquisitions for an aggregateconsideration of £89 million. In a full year, these acquisitions are expected toadd approximately £170 million in additional revenue. Since the beginning of the financial year on 1 August 2005, a total of 50businesses in Europe and North America have been acquired for an aggregateconsideration of approximately £900 million. These 50 acquisitions are expectedto add approximately £1,389 million to Group revenue in a full year. Goodwilland intangible assets related to these acquisitions is estimated to be around£582 million. These totals now include the recommended offer for Brandon Hireplc which was announced on 28 March 2006 and which was declared unconditional on2 May 2006. North America On 8 May 2006, Ferguson acquired certain assets associated with three locationsin Alabama that comprise the Montgomery branch of Central Supply, Inc. ("CentralSupply") from Andy Graham. Central Supply is a distributor of plumbing supplies.In the year ended 30 November 2004, Central Supply had revenue of $6.5 million(£3.5 million) and gross assets of $1.6 million (£0.9 million) at that date. On 22 May 2006, Ferguson acquired Supply North Central Group, Inc. ("SNCG") from50 individuals, trusts and members of the Carpenter family. SNCG is a wholesaledistributor of residential and light commercial plumbing and hydronic heatingproducts operating from 11 showroom and warehouse locations across Michigan. Inthe year ended 31 January 2006, SNCG had revenue of $45.9 million (£25.0million) and gross assets of $11.1 million (£6.1 million) at that date. Also on 22 May 2006, Ferguson acquired the inventory and certain fixed assets ofCentral Lighting, Inc. ("Central Lighting") from Dallas Spence and Kevin Spence.Central Lighting is a single location lighting business based in Jackson,Mississippi. In the year ended 31 December 2005, Central Lighting had revenue of$1.8 million (£1.0 million) and gross assets of $0.3 million (£0.2 million) atthat date. On 5 June 2006, Ferguson acquired Davidson Electric Wholesale Supply, Inc.("Davidson") from Jeff Griffith and Earl Riddle. Davidson is a distributor ofelectric and plumbing supplies based in Lexington, North Carolina. In the yearended 31 March 2005, Davidson had revenue of $5.5 million (£3.0 million) andgross assets of $2.9 million (£1.6 million) at that date. On 16 June 2006 Stock Building Supply ("Stock") acquired Coleman Floor Company,Inc. ("Coleman") from 12 individuals. Coleman sells and installs residentialflooring products to production residential homebuilders. Coleman operates from23 locations throughout Illinois, Virginia, North Carolina, Georgia and Florida.In the year ended 31 December 2005, Coleman had revenue of $233.5 million(£127.6 million) and gross assets of $46.8 million (£25.6 million) at that date. Europe On 31 May 2006, Wolseley UK acquired Ivybridge Building Supplies Limited("Ivybridge") from Len and Sheila Scott. Ivybridge is a single branch generalbuilders merchant in Ivybridge near Plymouth, Devon. Ivybridge supplies a rangeof building, electrical and plumbing products mainly to small and medium sizedbuilders. In the year ended 30 September 2005, Ivybridge had revenue of £2.0million and gross assets of £0.1 million at that date. On 9 June 2006, PBM agreed to acquire the trade and assets of seven Lariviere SAoutlets ("Outlets") from AXA Private Equity. The Outlets have a primary focus onwood, panels and heavyside products allowing PBM to increase the network of itsbrands: Reseau Pro (building materials), Panofrance (timber) and Reseau Top(roofing products). In the year ended December 2005, the Outlets had revenue of€12.7 million (£8.8 million) and gross assets of €2.0 million (£1.4 million) atthat date. The divisional split of the total acquisition spend since 1 August 2005 is: Division No. of Acquisitions Spend £ Million Europe 20 409North America 30 491TOTAL 50 900 Charlie Banks, Group Chief Executive of Wolseley said: "We are delighted to announce these new bolt-on acquisitions which continue tosupport our strategy of geographic and product expansion." 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 = $1.83, £1 = €1.45 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 68,000 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.L, 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