Archive News

£15 million spent on five acquisitions

Wolseley announced today five further bolt on acquisitions for an aggregate consideration of £15 million. In a full year, these bolt on acquisitions are expected to add approximately £28 million to total revenue.

Since the beginning of the financial year on 1 August 2006, a total of 41 bolt on acquisitions in Europe and North America have been completed for an aggregate consideration of approximately £374 million. These 41 acquisitions are expected to add approximately £656 million to Group revenue in a full year. Goodwill and intangible assets related to these acquisitions is estimated to be around £258 million.  

Chip Hornsby, Group Chief Executive 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 Hollow Metal Specialists helps Stock Building Supply develop their commercial sales initiative."

Details of the latest five acquisitions are as follows:

North America

On 14 May 2007, Wolseley Canada acquired Maverick Supplies Limited ('Maverick'). Maverick is a wholesale distributor of pipes, 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 30 September 2006, Maverick had revenue of CAD$17.5 million (£8.3 million) and gross assets of CAD$2.0 million (£0.9 million) at that date.

On 2 July 2007, Stock Building Supply acquired certain assets of Hollow Metal Specialists, Inc. ('HMS'). 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 31 December 2006, HMS had revenue of $15.4 million (£7.7 million) and gross assets of $1.9 million (£1.0 million) at that date.

Europe

On 1 June 2007, Wolseley France acquired Etablissements Lebrun SAS ('Lebrun'). Lebrun is a generalist builders' merchant based in one location South East of Paris. In the year ended 31 December 2006, Lebrun had total revenue of €2.8 million (£1.9 million) and gross assets of €0.5 million (£0.3 million) at that date.

On 1 June 2007, DT Group acquired H.R. Sandvold AS ('Sandvold'). 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 31 December 2006, Sandvold had revenue of NOK58.5 million (£4.9 million) and gross assets of NOK13.3 million (£1.1 million) at that date.

On 22 June 2007, DT Group acquired A/S Baagoe & Riber ('Baagoe & Riber'). Baagoe & Riber, a builders' merchant, is based in Svendborg in the South of Funen, the second largest island in Denmark. In the year ended 31 December 2006, Baagoe & Riber had revenue of DKK51.8 million (£4.7 million) and gross assets of DKK20.9 million (£1.9 million) at that date.