Notice of Meetings, etc.
Wolseley PLC
11 January 2000
Update announcement in advance of
meetings with stockbrokers' analysts
Analysts' meetings
Wolseley proposes to meet with stockbrokers' analysts between 12 and 14
January to discuss the general trading position of the group and the overall
outlook for the current financial year.
Trading update
The trading position of the group, together with the outlook, remains
unchanged from that set out in the statement issued on 10 December 1999 which
reported the comments made by the Chairman at the Annual General Meeting.
Recent acquisitions and disposals
Wolseley announces today that, since the news release issued on 1 November
1999, it has completed the acquisition of three lumber distribution businesses
in the USA for an aggregate consideration, including debt, of approximately
$102 million (£62.5 million). These acquisitions expand Wolseley's lumber
distribution activities into the new markets of Florida and California. They
bring Wolseley's total acquisition spend, including debt acquired, to
approximately £141 million in the financial year to date and should add
approximately £400 million to the Wolseley Group turnover in a full year.
Details of the businesses acquired are set out below.
On 14 December 1999, Carolina Holdings Inc acquired the business and certain
assets and liabilities of Columbia Lumber and Manufacturing Company. Columbia
is the premier building materials' supplier to the professional contractor
serving the residential market in Columbia, South Carolina and operates from
two locations. For the year ended 31 December 1999 the business reported
sales of $35.0 million (£21.5 million). This acquisition expands Carolina's
presence in the growing Columbia market.
On 29 December 1999, Carolina Holdings Inc acquired the business and certain
assets of McGinnes Lumber Company, a lumber distribution business operating
from one location in Plant City, twenty miles east of Tampa in Central
Florida. This location includes a door manufacturing facility. For the year
ended 31 December 1999, the business reported sales of $39.2 million (£24.0
million). This is Carolina's first entry into the Florida market and is
expected to lead to further expansion in that state.
On 10 January 2000, Carolina Holdings Inc acquired the Terry Companies, one of
the leading lumber distribution businesses in Southern California, which is a
new market for Carolina. Terry operates from 14 lumber yards, most of which
are located in the north Los Angeles vicinity. The company also has three
sash and door facilities, a roof truss facility, two equipment rental centres,
a commercial door facility and a millwork facility in close proximity to these
yards. For the year ended 31 December 1999, Terry reported sales of $246.6
million (£151.3 million).
The conditional sale to Industri Kapital of Wolseley's Boiler and Burner
Manufacturing businesses, announced on 1 November 1999, has not completed as
the funding arrangements could not be finalised. Whilst there have been
trading difficulties in Switzerland, the remaining businesses are trading
broadly in line with last year. For the year ended 31 July 1999, the boiler
and burner businesses accounted for less than 3% of group trading profit
before goodwill amortisation and exceptionals.
Note: The exchange rate used in this announcement is £1 = 1.63 US dollars
ENQUIRIES:
John Young - Group Chief Executive
Steve Webster - Group Finance Director
Wolseley plc - Telephone 01905 777200
Hugh Teagle - Corporate Communications
Wolseley plc - Telephone 01905 777402
Tony Knox - Financial Dynamics
Telephone 0171 831 3113
www.wolseley.com
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