$172m Acquisition of Lumber Distributer in USA
Wolseley PLC
4 April 2000
Wolseley announces $172 million acquisition of premier lumber distribution
business in Utah and Idaho in the USA
Wolseley announced today that Carolina Holdings, Inc ('Carolina'), its US
lumber distribution business, has entered into a conditional agreement to
acquire Anderson Lumber Company ('Anderson'), a major supplier of building
materials and supplies to the professional builder in the Intermountain region
of the western USA. The agreement is conditional upon the approval of
Anderson's shareholders. Completion is expected during April.
The consideration for the acquisition, including debt acquired, is $172
million (£108 million) which will be satisfied in cash. This brings
Wolseley's total acquisition spend in the financial year to date to
approximately £300 million. In a full year these acquisitions will add a
further £800 million to group turnover.
Anderson operates 35 building materials centres, 7 truss manufacturing plants
and a distribution centre. It is the market leading lumber distribution
business in Utah and Idaho and also operates in Wyoming, Montana, Washington
and Oregon. Each of these states represents new markets for Carolina. In the
year ended 31 December 1999, Anderson reported a profit before taxation of
$18.2 million (£11.4 million) on sales of $390 million (£245 million). It had
net operating assets (excluding debt) of $140 million (£88 million) at that
date.
The acquisition presents Carolina with the opportunity to diversify further
its geographic coverage of the Western USA, complementing the acquisition,
completed earlier this year, of the Terry group of companies in California.
It consolidates Carolina's position as the leading supplier of building
materials and supplies to professional contractors across the USA. Following
the acquisition, Carolina will operate from over 200 locations in 21 states
and will have over 9,000 employees. Its sales for the year ended 31 July 1999
exceeded $1.7 billion (£1.1 billion).
Note: The exchange rate used in this announcement is £1 = 1.59 US
dollars.
ENQUIRIES:
Steve Webster - Group Finance Director
Wolseley plc - Telephone 01905 777200
Tony Knox - Financial Dynamics
Telephone 0171 831 3113
www.wolseley.com
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