15th Nov 2007 08:00
Travis Perkins PLC15 November 2007 15 November 2007 TRAVIS PERKINS PLC Travis Perkins acquires Tile Giant Tile Giant becomes seventh group brand Travis Perkins plc ("Travis Perkins"), a leading builders' merchant and homeimprovement retailer, announces that it has entered into an agreement to acquirethe entire issued share capital of Tile Giant (Holdings) Ltd ("Tile Giant") andits subsidiary companies. The acquisition represents a move for Travis Perkins into another newdistribution channel and the establishment of the Group's seventh brand. The aggregate consideration is £12.0 million plus a further payment dependentupon future performance and expansion of the business over the period toDecember 2010. The consideration is payable in a mixture of cash and the issueof loan notes. Tile Giant is a rapidly growing retailer of tiles and accessories which tradesfrom 29 outlets, with an average trading space of approximately 4,000 - 5,000sqft, predominantly in the North of England and the Midlands. For the financialyear ended 30 April 2007, Tile Giant generated profits before taxation of £0.3million and, as at that date, had gross assets of £4.3 million. Tile Giant's estate is relatively young with eleven of the 29 outlets havingopened during 2007. Consequently, as these stores mature, earnings from theexisting portfolio are expected to grow significantly. Current annualisedrevenues are approximately £10.6 million with annualised profit before taxationof approximately £0.9 million. The acquisition is expected to be earnings neutral in the first year ofownership and enhancing thereafter. John Carter, Chief Operating Officer of Travis Perkins said: "Under the entrepreneurial leadership of its Managing Director, Mo Iqbal, TileGiant has grown rapidly and is set to become a major force in this attractiveand growing market. The acquisition of Tile Giant provides potential forsignificant further growth in our business and branch network and is consistentwith our strategy of investing in specific adjacent market segments. We welcomeMo and his management and staff into our Group and look forward to furthergrowth in the store base of Tile Giant in 2008 and beyond." - ends - There will be a conference call for analysts at 10.00am (GMT) today. To dialinto the conference, please call: 0845 111 4059 (UK Local Call) or, +44 (0)1452555 566 (International Dial In), quoting Conference ID: 24915097. Enquiries: Paul Hampden Smith, Finance DirectorTravis Perkins PLC Tel: +44 (0)1604 683 111 David Bick / Mark LongsonSquare1 Consulting Limited Tel: +44 (0)20 7929 5599 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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