Acquires remaining 70% of Toolstation Limited
3 January 2012
Travis Perkins Plc
Travis Perkins acquires remaining 70% of Toolstation Limited
Travis Perkins plc ("Travis Perkins"), the UK's largest builders' merchant and home improvement retailer, announces that it has acquired the remaining 70% of the issued share capital of Toolstation Limited ("Toolstation") it does not already own from Mark Goddard-Watts and his family trusts.
Toolstation is a fast growing multi-channel business selling lightside building material products. The business has a strong internet and catalogue based operation and a rapidly expanding branch network operating throughout Great Britain. This network has expanded from 12 outlets in operation at the date Travis Perkins acquired its first interest in Toolstation in 2008, to 103 outlets now. In April 2008, Travis Perkins acquired a 30% equity interest in the company together with an option to buy the remaining shares. Toolstation currently has gross assets of £34m and generated EBITDA of £5m in the financial year to 31 December 2011.
The aggregate consideration is £42 million (made up of £24m paid now and £18m previously paid for the initial 30% shareholding and option) plus a further payment dependent upon future performance and expansion of the business over the period to December 2013. Both the immediate consideration and any further consideration related to performance and expansion is payable in cash from existing resources. The current management team at Toolstation all remain in place following this acquisition of the outstanding equity.
Toolstation is expected to generate excellent returns for the Group. New branches move into profit after an average of less than 9 months and even the oldest branches in the network, at up to 10 years old, have yet to reach sales maturity. This growth profile, together with multi-channel sales growing at several times current market growth rates, should ensure Toolstation becomes a significant profit contributor within the Group. Its acquisition is an expansion of the Group's consumer division, currently comprising Wickes, the home improvement retailer and Tile Giant, a ceramic tile merchant chain.
Geoff Cooper, Chief Executive of Travis Perkins said:
'Toolstation offers great value and better reliability to customers who want to order and get materials in the way that suits them best - online, via their computer or mobile phone, or by a 'phone call to our call centre, or at our trade counters. With next day delivery, reserve and collection through our trade counters and full stocks at our branches, we help keep tradesmen working and productive. If it's in our catalogue, we've got it, and can get it to you - fast.
Toolstation is a great addition to our consumer division and will add to our growth in market share and returns. Following this acquisition of the outstanding equity, we will look to further exploit Toolstation as part of our service to the trade and to DIY customers"
Enquiries:
Geoff Cooper, Chief Executive
Paul Hampden Smith, Finance Director
Travis Perkins Plc +44 (0) 1604 683 222
David Bick / Mike Feltham / Mark Longson
Square1 Consulting Limited +44 (0) 20 7929 5599
This information is provided by RNS
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