Wolseley plc Acquisition Update - 7 Million Pounds Spent on Two Further Acquisitions
November 08 2005 - 9:11AM
PR Newswire (US)
CINCINNATI, Nov. 8 /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 acquisitions.
Since the beginning of the financial year on August 1, 2005, a
total of 15 distribution businesses in Europe and North America
have been acquired for an aggregate consideration of approximately
418 million pounds Sterling in cash. These 15 acquisitions are
expected to add approximately 671 million pounds to group turnover
in a full year. Goodwill related to these acquisitions is estimated
to be around 266 million pounds. North American Plumbing and
Heating Distribution On November 7, 2005, Ferguson acquired LAB
Distributing, Inc. ("LAB") from Lynne and Rick Clawson. LAB is the
largest independent dealer of General Electric appliances in the
Raleigh-Durham, North Carolina market. In the year ended August 31,
2005, LAB had sales of $2.5 million (1.4 million pounds) and had
gross assets of $0.7 million (0.4 million pounds) at that date. US
Building Materials Distribution On November 7, 2005, Stock Building
Supply ("Stock") acquired Canyon Drive Lumber ("Canyon") a
distributor of building materials, from members of the Barnett
family. Canyon is the market leader in Amarillo, Texas with a solid
customer base of local and regional builders that focus on custom
homes. In the year ended December 31, 2004, Canyon had sales of
$32.3 million (17.9 million pounds) and had gross assets of $6.3
million (3.5 million pounds) at that date. The divisional split of
the total acquisition spend since 1 August 2005 is: Division No. of
Spend Acquisitions million pounds European Distribution 4 242 North
American Plumbing & Heating Distribution 9 102 US Building
Materials Distribution 2 74 TOTAL 15 418 Charlie Banks, Group Chief
Executive of Wolseley said: "I am delighted to announce these two
new acquisitions which will further strengthen our presence in
North America. They support our strategy of growing the business at
double-digit rates through acquisitions and organic growth."
Exchange Rates The following exchange rates have been used for the
acquisitions noted above: 1 pound Sterling = $1.80. 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 and a leading supplier of building
materials to professional contractors in North America, the UK and
Continental Europe. Group sales for the year ended 31 July 2005
were approximately �11.3 billion and operating profit, before
goodwill, was 721 million pounds. Wolseley has around 60,000
employees operating in 14 countries namely: UK, USA, France,
Canada, Ireland, Italy, The Netherlands, Switzerland, Austria,
Czech Republic, Hungary, Belgium, Luxembourg and Denmark. Wolseley
is listed on the London and New York Stock Exchanges (LSE:WOS.L)
(NYSE:WOS) and is in the FTSE 100 index of listed companies.
DATASOURCE: Wolseley plc CONTACT: Investors-Analysts, John R.
English, Director, Investor Relations, North America
+1-513-771-9000, or Media, Penny Studholme, Director of Corporate
Communications, 0118 929 8886, both of Wolseley plc Web site:
http://www.wolseley.com/
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