Acquisitions Update
Wolseley PLC
09 October 2006
NEWS RELEASE
9 October 2006
Wolseley plc
Acquisitions update
£111 million spent on four bolt on acquisitions taking total for bolt on
acquisitions for the year so far to £160 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 four further bolt on acquisitions for an aggregate
consideration of £111 million. In a full year, these bolt on acquisitions are
expected to add approximately £148 million in additional revenue.
Since the beginning of the financial year on 1 August 2006, a total of ten bolt
on acquisitions in Europe and North America have been completed for an aggregate
consideration of approximately £160 million. These ten acquisitions are expected
to add approximately £238 million to Group revenue in a full year. Goodwill and
intangible assets related to these acquisitions is estimated to be around £109
million. In addition, on 25 September 2006, Wolseley plc completed the
acquisition of DT Group (formerly known as Danske Traelast) for £1,353 million
which brings aggregate acquisition spend for the year to £1,513 million.
North America
On 2 October 2006, the assets of Lawrence Plumbing Supply, Co and the shares of
Castle Supply Company, Inc and Castle North Corporation ('Castle Group') were
acquired from Joseph Lawrence, Joseph White, Robert Stern, Robert Caldwell and
John Thomas in the USA. Castle Group is a premier distributor of plumbing
products with 27 locations in Florida. This acquisition will compliment
Wolseley's established presence in Florida's commercial plumbing market. In the
year ended 31 December 2005, Castle Group had revenue of $165.3 million (£87.9
million) and gross assets of $28.4 million (£15.1 million) at that date.
On 2 October 2006, Ferguson acquired Northern Water Works Supply, Inc ('NWWS')
from David B. McNair, David B. McNair Grantor Retained Annuity Trust, Janet B.
McNair, Ron J. Vasko and J. Jeffrey Mogush. NWWS is the largest independent
wholesaler of waterworks products in the states of Minnesota, North Dakota,
South Dakota, Iowa, Western Wisconsin and Northern Illinois. In the year ended
31 December 2005, NWWS had revenue of $91.2 million (£48.5 million) and gross
assets of $20.1 million (£10.7 million) at that date.
Europe
On 2 October 2006, Wolseley UK acquired Murdock ECD Limited and Murdock Haworth
Limited ('Murdock') from Murdock Group Limited. Murdock consists of three
builders merchant branches located in the north west of England. In the year
ended 31 December 2005, Murdock had revenue of £7.1 million and gross assets of
£0.7 million at that date.
On 5 October 2006, DT Group acquired Helatukku Finland Oy ('Helatukku') from
Wedeco and Hannu Rantanen. Helatukku, based in Western Finland, imports, markets
and distributes items mainly for the kitchen cabinet manufacturing industry. In
the year ended 31 December 2005, Helatukku had revenue of €6.3 million (£4.2
million) and gross assets of €3.0 million (£2.0 million) at that date.
The divisional split of the total acquisition spend since 1 August 2006 is:
Division No. of Acquisitions Spend £ Million
Europe 5 26
North America 5 134
TOTAL BOLT ONS 10 160
Acquisition of DT Group 1 1,353
TOTAL ACQUISITION SPEND 11 1,513
Chip Hornsby, Group Chief Executive of Wolseley said:
'We are delighted to announce these four bolt on acquisitions which complement
our existing business in Europe and North America. Making bolt on acquisitions
is an important part of delivering double digit growth and the pipeline for the
year remains strong. The acquisitions announced today include our first bolt on
in Finland, which following the recent purchase of DT Group, will help
strengthen our platform for growth in the region.'
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 = €0.67
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 22 countries namely: UK, USA,
France, Canada, Ireland, Italy, The Netherlands, Switzerland, Austria, Czech
Republic,Hungary, Belgium, Luxembourg, Denmark, Sweden, Finland, Norway, San
Marino, Puerto Rico, Panama, Trinidad & Tobago and Mexico. 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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