About Work in Property
News
Contact Us
Job Seekers
Employers
Partners

Tuesday 6 July 2010

Travis Perkins buys BSS for £557m


Travis Perkins has agreed to acquire BSS Group for £557m which will see it become the UK's biggest plumbing and heating distributor.

Robert Walker, the chairman of Travis Perkins, said: "We are confident this transaction can deliver significant value for the shareholders in the enlarged group."

Travis Perkins is paying 435.4p for each BSS share, split between 232.9p in cash and 196.4p in new shares, based on Travis Perkins' closing price yesterday of 753p. It also includes 6.09p to pay the final dividend on BSS's shares. BSS shares closed at 427p.

The takeover price is 34 per cent above the closing price of 325p of BSS's shares on 27 May, the day before Travis Perkins revealed it was in "advanced discussions" about acquiring BSS. Travis Perkins said the enlarged group would have the scale to purchase products more "competitively" and would benefit from global sourcing. Along with other efficiencies, such as combined distribution routes, it expects to make annual pre-tax cost savings of at least £25m in 2013.

No comments:

 
help|terms and conditions|privacy policy