Acquisition
Wolseley PLC
06 August 2007
NEWS RELEASE
6 August 2007
Wolseley plc
Acquisitions Update
£9 million spent on two acquisitions taking total for bolt on acquisitions for
the year ending 31 July 2007 to £383 million
A further conditional acquisition announced enhancing Wolseley France's position
in the truss assembly market
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 two further bolt on acquisitions for an aggregate
consideration of £9 million. In a full year, these bolt on acquisitions are
expected to add approximately £14 million to total revenue.
Since the beginning of the financial year on 1 August 2006, a total of 43 bolt
on acquisitions in Europe and North America have been completed for an aggregate
consideration of approximately £383 million. These 43 acquisitions are expected
to add approximately £671 million to Group revenue in a full year. Goodwill and
intangible assets related to these acquisitions is estimated to be around £261
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 £1,339 million, which brings aggregate acquisition spend for
the year ended 31 July 2007 to £1,722 million.
Details of the latest acquisitions are as follows:
North America
On 30 July 2007, Ferguson acquired the assets of Fire Fab, Inc. ('Fire Fab')
from Brad Coons and David Wagner. Fire Fab is a distributor and fabricator of
fire safety and suppression systems located in Minneapolis, Minnesota. In the
year ended 31 December 2006, Fire Fab had revenue of $12.4 million (£6.0
million) and gross assets of $2.7 million (£1.3 million) at that date. This
acquisition expands Ferguson's presence in the growing fire protection market.
Europe
On 30 July 2007, DT Group acquired STM?ve TrTM? ForsTM?ljnings AB ('STM?ve')
from Pieter Martinsson AB, Klas Berntsson Invest AB and Per Stellan AB. STM?ve,
a builders merchant, operates from two branches in STM?ve and Lerum, Sweden. In
the year ended 31 December 2006, STM?ve had revenue of SEK111.0 million (£8.1
million) and gross assets of SEK33.1 million (£2.4 million) at that date. This
is the eighth bolt on acquisition since DT Group joined Wolseley Group and is
consistent with the plan to expand DT's heavy side building materials footprint
in the Nordic region.
The divisional split of the total acquisition spend for the year ended 31 July
2007 is:
Division No. of Acquisitions Spend
£ Million
Europe 21 96
North America 22 287
TOTAL BOLT ONS 43 383
Acquisition of DT Group 1 1,339
TOTAL ACQUISITION SPEND 44 1,722
In addition to the above, on 26 July 2007, Wolseley France signed an agreement
conditional upon obtaining French competition clearance, to acquire Sofiparts
SAS ('Sofiparts') and its subsidiary companies from SAS Savare. Sofiparts
designs, engineers and assembles roof trusses operating from nineteen production
sites across France. In the year ended 31 December 2006, Sofiparts had revenue
of €121.4 million (£81.5 million) and gross assets of €36.6 million (£24.5
million) at that date. Completion of this acquisition is expected in November
2007. The conditional acquisition of Sofiparts is in line with Wolseley France's
strategy to move into the truss assembly market and further increase its
presence in the new residential sector.
Chip Hornsby, Group Chief Executive of Wolseley said:
'These acquisitions build on our strategy of profitable growth through
acquisitions and organic means and provide increased diversity to the Group's
product range. We are delighted to also be announcing an agreement to acquire
Sofiparts, a leading operator in the truss and wood frame housing market which
will further complement our existing building materials operations in France.'
ENQUIRIES:
Guy Stainer +44 118 929 8744
Group Investor Relations Director +44 7739 778187
John English +1 513 771 9000
Vice President, Investor Relations, North America +1 513 328 4900
Brunswick +44 20 7404 5959
Andrew Fenwick
Sophie Brand
Exchange Rates
The following exchange rate has been used for the acquisitions noted above:
£1 = $2.06, £1 = SEK13.68, £1 = €1.49
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 revenue for the
year ended 31 July 2006 was approximately £14.2 billion and operating profit,
before amortisation of acquired intangibles, was £882 million. Wolseley has
around 78,000 employees operating in 28 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, Barbados and Greenland. 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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