Investment in Toolstation Ltd

Travis Perkins PLC
07 April 2008





7 April 2008


                                TRAVIS PERKINS PLC

               Travis Perkins PLC invests in Toolstation Limited

       Acquires 30% with right to purchase remaining 70% after four years

Travis Perkins PLC ('Travis Perkins'), the leading builders' merchant and home
improvement retailer, announces today a further development of its multi-channel
strategy through an investment in Toolstation Limited ('Toolstation'), a rapidly
growing direct retailer of tools and building materials.

Structure

Travis Perkins has acquired 30% of Toolstation's equity from its founding
shareholders for £5 million and will provide an initial loan of £7 million to
allow Toolstation to repay its outstanding early stage loan capital. Travis
Perkins will then provide an additional loan facility to support the growth of
Toolstation's business. This facility is expected to be drawn, up to a maximum
of £30 million, by Toolstation over the next four years. Drawings under this
facility are subject to performance conditions related to progress against
Toolstation's business plan and all loans will be provided under normal
commercial terms. Geoff Cooper, Travis Perkins' Chief Executive will join the
board of Toolstation.

Travis Perkins has the right to purchase the remaining 70% of Toolstation's
equity through an earn-out formula. This gives Travis Perkins the right to
acquire the outstanding equity of Toolstation after four years on a multiple of
profits with payments in 2012 and 2014. The present owners of Toolstation have
the right to require Travis Perkins to acquire the outstanding 70% of its equity
at these dates provided that profits are above a minimum threshold. It is
expected that over the next six years cash generated from trading will repay all
drawings under the £30 million loan facility and will create a positive cash
balance by the end of this period. This balance will be retained within
Toolstation Limited.

Toolstation's turnover in the last 12 months was £21.4 million, with EBITDA
being breakeven for the same period. Toolstation has gross assets of £12.0
million and, for the year ended 31 July 2007, recorded a loss before taxation of
£0.3 million.

About Toolstation

Toolstation was created by Mark Goddard-Watts, a founder of Screwfix, the
largest direct selling operator in this market. Mark and a number of former
executives of Screwfix left that business after its acquisition by a chain
retailer, and Toolstation was subsequently launched in 2003.

Toolstation sells a wide range of tools, fixings, hardware, electrical and
plumbing and heating materials to retail and trade customers throughout the
United Kingdom and through a franchised operation in the Netherlands. All
products are included in its catalogue and are in stock and available online
(www.toolstation.com), via its UK-based telephone call centre and through all of
its trade counters at very high levels of product availability. Customer orders
placed online and by telephone before 5.00pm are dispatched for delivery next
business day.

Toolstation's facilities comprise a main distribution warehouse with trade
counter in Bridgwater, Somerset and ten more trade counters located across the
UK. Toolstation plans to continue its successful strategy of branch network
expansion, with the aim of operating from at least 80 trade counters within the
next five years. Toolstation currently employs 244 people.

Opportunity

Travis Perkins will use its buying scale, global sourcing capabilities, supply
chain facilities and property expertise with the aim of accelerating
Toolstation's rate of growth. Through this investment Travis Perkins has also
acquired the right to use Toolstation's ecommerce, warehousing and fulfilment
software for direct selling of Travis Perkins' existing merchanting and
retailing brands. Travis Perkins has entered into a software and support
contract with Owtanet, a technology services company related to Toolstation, to
assist with implementation of these technologies.

Geoff Cooper, Chief Executive of Travis Perkins said;

'This investment represents a significant advance in the development of our
multi-channel strategy. Our customers increasingly expect products from us
through a variety of distribution channels, delivered to them or collected by
them via a time, place and mechanism that suits their needs. The experienced
Toolstation team have already developed one successful business in this market
and we are delighted to be working with them with the aim of creating the market
leader using their skills and our scale and resources.'

Mark Goddard-Watts, founder and Chief Executive of Toolstation said;

'We had planned to find a strategic partner at this stage of our development to
support and continue our growth and we believe that Travis Perkins' culture and
ambition perfectly suits our plans. With Travis Perkins' support, we look
forward to continuing to deliver great value products to an increasing number of
customers across the UK'.

Andrew Hodgson, partner at KPMG and advisor to Toolstation said;

'Toolstation's management has created a scalable platform for growth which is
outstanding. It was clear from the first contact between Travis Perkins and
Toolstation that this deal and its structure makes perfect sense for both
sides.'


Enquiries:

Geoff Cooper, Chief Executive
Travis Perkins PLC                                     [phone]

Neil Carroll, Marketing Director
Toolstation Ltd                                        [phone]

David Bick/Mark Longson
Square1 Consulting Limited                             [phone]






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