Wolseley plc Acquisitions Update
July 05 2007 - 3:30AM
PR Newswire (US)
15 million pounds spent on five acquisitions taking total for bolt
on acquisitions for the year to date to 374 million pounds
CINCINNATI, July 5 /PRNewswire-FirstCall/ -- 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 five further bolt on
acquisitions for an aggregate consideration of 15 million pounds
Sterling. In a full year, these bolt on acquisitions are expected
to add approximately 28 million pounds to total revenue. Since the
beginning of the financial year on August 1, 2006, a total of 41
bolt on acquisitions in Europe and North America have been
completed for an aggregate consideration of approximately 374
million pounds. These 41 acquisitions are expected to add
approximately 656 million pounds to Group revenue in a full year.
Goodwill and intangible assets related to these acquisitions are
estimated to be around 258 million pounds. In addition, on
September 25, 2006, Wolseley plc completed the acquisition of DT
Group (formerly known as Danske Traelast) for an estimated
consideration of 1,339 million pounds, which brings aggregate
acquisition spend for the year to 1,713 million pounds. Details of
the latest five acquisitions are as follows: North America On May
14, 2007, Wolseley Canada acquired Maverick Supplies Limited
("Maverick") from Kathy Davies, Rick Davies and Bergum Equities
Inc. Maverick is a wholesale distributor of pipe, valves, fittings
and industrial supplies to oil and natural gas companies and
oilfield contractors with six locations in south central Alberta.
In the year ended September 30, 2006, Maverick had revenue of
CAD$17.5 million (8.3 million pounds) and gross assets of CAD$2.0
million (0.9 million pounds) at that date. On July 2, 2007, Stock
Building Supply acquired certain assets of Hollow Metal
Specialists, Inc. ("HMS") from Patricia, Michael, Patrick and
Timothy Hilliard. HMS is a fabricator, distributor and installer of
commercial doors, hardware and access control devices for
commercial and institutional projects, based in Sarasota Florida.
In the year ended December 31, 2006, HMS had revenue of $15.4
million (7.7 million pounds) and gross assets of $1.9 million (1.0
million pounds) at that date. Europe On June 1, 2007, Wolseley
France acquired Etablissements Lebrun SAS ("Lebrun") from
Jean-Claude Lebrun, Anne-Sophie Thieffry, Marie-Charlotte Lebrun
and Emerantine Lebrun. Lebrun is a generalist builders' merchant
based in one location south east of Paris. In the year ended
December 31, 2006, Lebrun had total revenue of 2.8 million euros
(1.9 million pounds) and gross assets of 0.5 million euros (0.3
million pounds) at that date. On June 1, 2007, DT Group acquired
H.R. Sandvold AS ("Sandvold") from HS Investering AS and Bukkevik
Invest AS. Situated in Haugesund, on the west coast of Norway,
Sandvold is a plumbing wholesaler and in recent years has extended
its product range into kitchens, bathrooms and bathroom
accessories. This acquisition will enable DT Group to expand its
lightside product offering to complement its extensive heavyside
range. In the year ended December 31, 2006, Sandvold had revenue of
NOK58.5 million (4.9 million pounds) and gross assets of NOK13.3
million (1.1 million pounds) at that date. On June 22, 2007, DT
Group acquired A/S Baagoe & Riber ("Baagoe & Riber") from
Baagoe & Riber Holding A/S, Hans Jorgen Riber, Ulla Riber,
Susanne Riber, Jens Peter Riber and Marni Holmquist. Baagoe &
Riber, a builders merchant, is based in Svendborg in the south of
Funen, the second largest island in Denmark. In the year ended
December 31, 2006, Baagoe & Riber had revenue of DKK51.8
million (4.7 million pounds) and gross assets of DKK20.9 million
(1.9 million pounds) at that date. The divisional split of the
total acquisition spend since August 1, 2006 is: No. of Spend
Division Acquisitions Million Pounds Europe 20 91 North America 21
283 TOTAL BOLT ONS 41 374 Acquisition of DT Group 1 1,339 TOTAL
ACQUISITION SPEND 42 1,713 Chip Hornsby, Group Chief Executive of
Wolseley said: "We are pleased to announce these five bolt on
acquisitions which continue to build on our strategy of growth
through acquisitions and organic means. The acquisition of Sandvold
introduces a specialist plumbing distributor into DT Group and HMS
helps Stock Building Supply develop their commercial sales
initiative." Exchange Rates The following exchange rate has been
used for the acquisitions noted above: 1 pound = $2.00, 1 pound =
CAD$2.10, 1 pound = 1.47 euros, 1 pound = NOK11.92, 1 pound =
DKK11.05 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 itemize 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. About Wolseley plc 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 July 31, 2006
was approximately 14.2 billion pounds and operating profit, before
amortization of acquired intangibles, was 882 million pounds.
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. DATASOURCE: Wolseley plc CONTACT:
Guy Stainer, Group Investor Relations Director, +44 118 929 8744,
+44 7739 778187; John R. English, Vice President, Investor
Relations, North America, +1-513-771-9000, +1-513-328-4900;
Brunswick: Andrew Fenwick or Nina Coad, +44 20 7404 5959, all of
Wolseley plc Web site: http://www.wolseley.com/
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