Wolseley plc Acquisitions Update: 9 Million Pounds Spent on Two Acquisitions Taking Total for Bolt on Acquisitions for the Year
06 August 2007 - 9:15AM
PR Newswire (US)
CINCINNATI, Aug. 6 /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 two further bolt on
acquisitions for an aggregate consideration of 9 million pounds
Sterling. In a full year, these bolt on acquisitions are expected
to add approximately 14 million pounds to total revenue. Since the
beginning of the financial year on August 1, 2006, a total of 43
bolt on acquisitions in Europe and North America have been
completed for an aggregate consideration of approximately 383
million pounds. These 43 acquisitions are expected to add
approximately 671 million pounds to Group revenue in a full year.
Goodwill and intangible assets related to these acquisitions is
estimated to be around 261 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 ended July 31, 2007 to 1,722 million
pounds. Details of the latest acquisitions are as follows: North
America On July 30, 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 December 31,
2006, Fire Fab had revenue of $12.4 million (6.0 million pounds)
and gross assets of $2.7 million (1.3 million pounds) at that date.
This acquisition expands Ferguson's presence in the growing fire
protection market. Europe On July 30, 2007, DT Group acquired Save
Tra Forsaljnings AB ("Save") from Pieter Martinsson AB, Klas
Berntsson Invest AB and Per Stellan AB. Save, a builders merchant,
operates from two branches in Save and Lerum, Sweden. In the year
ended December 31, 2006, Save had revenue of SEK111.0 million (8.1
million pounds) and gross assets of SEK33.1 million (2.4 million
pounds) 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: No. of Spend Division Acquisitions
Million pounds 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 July 26, 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 December 31, 2006, Sofiparts had
revenue of 121.4 million euros (81.5 million pounds) and gross
assets of 36.6 million euros (24.5 million pounds) 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." Exchange Rates
The following exchange rate has been used for the acquisitions
noted above: 1 pound = $2.06, 1 pound = SEK13.68, 1 pound = 1.49
euros 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 Sophie Brand, +44 20
7404 5959 Web site: http://www.wolseley.com/
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