Acquisition
RNS Number:4023L
Wolseley PLC
02 November 2006
NEWS RELEASE
2 November 2006
Wolseley plc
Acquisitions update
61 million spent on six bolt on acquisitions taking total for bolt on
acquisitions for the year so far to 221 million
Wolseley plc, the world's largest specialist trade distributor of plumbing and
heating products to professional contractors and a leading supplier of building
materials, announced today six further bolt on acquisitions for an aggregate
consideration of 61 million. In a full year, these bolt on acquisitions are
expected to add approximately 102 million in additional revenue.
Since the beginning of the financial year on 1 August 2006, a total of sixteen
bolt on acquisitions in Europe and North America have been completed for an
aggregate consideration of approximately 221 million. These sixteen
acquisitions are expected to add approximately 340 million to Group revenue in
a full year. Goodwill and intangible assets related to these acquisitions is
estimated to be around 42 million. In addition, on 25 September 2006, Wolseley
plc completed the acquisition of DT Group (formerly known as Danske Traelast)
for an estimated consideration of 1,353 million which brings aggregate
acquisition spend for the year to 1,573 million.
North America
On 16 October 2006, Ferguson acquired Gulf Refrigeration Supply Inc. ("Gulf")
from Thomas K Holt and Douglas L Menard. Gulf is a distributor of HVAC
equipment, parts and supplies based in Tampa, Florida. In the year ended 30 June
2006, Gulf had revenue of $54.9 million (29.2 million) and had gross assets of
$8.8 million (4.7 million) at that date.
On 16 October 2006, Ferguson acquired the assets of Kandall Fabricating & Supply
Corporation KF Industries, LLC ("Kandall") from David Kandall and Patrick
Conklin. Kandall is a fabricator and distributor of fire sprinkler systems based
in Passaic, New Jersey. In the year ended 31 December 2005, Kandall had revenue
of $23.2 million (12.4 million) and had gross assets of $9.7 million (5.2
million) at that date.
On 16 October 2006, Stock Building Supply ("Stock") acquired the assets of Lee
Window & Door Company ("Lee") from Peter Farren. Lee is a distributor and
installer of commercial and high end residential windows located in Sanford,
North Carolina. In the year ended 31 December 2005, Lee had revenue of $8.3
million (4.4 million) and had gross assets of $0.9 million (0.5 million) at
that date.
On 23 October 2006, Stock acquired Perfection Truss Company, Inc ("Perfection")
from Jim Stafford. Perfection is the leading truss manufacturer in central New
Mexico, based in Albuquerque. In the year ended 31 March 2006, Perfection had
revenue of $6.4 million (3.4 million) and had gross assets of $2.0 million
(1.1 million) at that date.
Europe
On 31 October 2006, WOODCOTE - stavebni materialy, a.s. ("Woodcote") was
acquired from Neville Parry and Telor Holdings Limited. Woodcote has 37 outlets
and operates in the Czech Republic, Slovak Republic, Hungary, Poland, Romania
and Croatia. Woodcote is a general builders' merchant and also imports and
distributes doors, ceilings, flooring, baths, insulation and dry lining to
primarily professional contractors. In the year ended 31 December 2005, Woodcote
had revenue of CZK1,844 million (43.7 million) and had gross assets of CZK211
million (5.0 million) at that date.
On 1 November 2006, DT Group acquired Hjalmars Tra AB ("Hjalmars") from
Lars-Erik Bengtsson, Sven Enoch and Evan Thorsson. Hjalmars is a heavyside
builder's merchant with two locations in Stenungsund and Alvangen, Sweden. In
the year ended 31 December 2005, Hjalmars had revenue of SEK117.0 million (8.5
million) and had gross assets of SEK32.8 million (3.6 million) at that date.
The divisional split of the total acquisition spend since 1 August 2006 is:
Division No. of Acquisitions Spend
Million
Europe 7 57
North America 9 164
TOTAL BOLT ONS 16 221
Acquisition of DT Group 1 1,353
TOTAL ACQUISITION SPEND 17 1,574
Chip Hornsby, Group Chief Executive of Wolseley said:
"We are pleased to announce these six bolt on acquisitions which further
strengthen our existing business in Europe and North America. In particular,
Woodcote extends our reach in Hungary and the Czech Republic, and provides us
with an entry point into the new European growth markets of the Slovak Republic,
Poland, Romania and Croatia."
ENQUIRIES:
Investors/Analysts:
Guy Stainer 0118 929 8744
Head of Investor Relations 07739 778187
John English 001 513 771 9000
Director, Investor Relations North America 001 513 328 4900
Media:
Penny Studholme 0118 929 8886
Director of Corporate Communications 07860 553834
Brunswick 020 7404 5959
Andrew Fenwick
Nina Coad
Exchange Rates
The following exchange rate has been used for the acquisitions noted above:
1 = $1.88, 1 = 1.49, 1 = CZK42.25, 1 = SEK13.75
Certain statements included in this announcement may be forward-looking and may
involve risks, assumptions and uncertainties that could cause actual results to
differ materially from those expressed or implied by the forward looking
statements. Forward-looking statements include, without limitation, projections
relating to results of operations and financial conditions and the Company's
plans and objectives for future operations including, without limitation,
discussions of the Company's business and financial plans, expected future
revenues and expenditures, investments and disposals, risks associated with
changes in economic conditions, the strength of the plumbing and heating and
building materials market in North America and Europe, fluctuations in product
prices and changes in exchange and interest rates. All forward-looking
statements in this respect are based upon information known to the Company on
the date of this announcement. The Company undertakes no obligation to publicly
update or revise any forward-looking statement, whether as a result of new
information, future events or otherwise. It is not reasonably possible to
itemise all of the many factors and events that could cause the Company's
forward-looking statements to be incorrect or that could otherwise have a
material 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 and
heating products to professional contractors and a leading supplier of building
materials in North America, the UK and Continental Europe. Group revenues for
the year ended 31 July 2006 were approximately 14.2 billion and operating
profit, before amortisation of acquired intangibles, was 882 million. Wolseley
has more than 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 Stock
Exchanges (LSE: WOS, NYSE: WOS) and is in the FTSE 100 index of listed
companies.
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