Travis Perkins acq Tile Giant
Travis Perkins PLC
15 November 2007
15 November 2007
TRAVIS PERKINS PLC
Travis Perkins acquires Tile Giant
Tile Giant becomes seventh group brand
Travis Perkins plc ('Travis Perkins'), a leading builders' merchant and home
improvement retailer, announces that it has entered into an agreement to acquire
the entire issued share capital of Tile Giant (Holdings) Ltd ('Tile Giant') and
its subsidiary companies.
The acquisition represents a move for Travis Perkins into another new
distribution channel and the establishment of the Group's seventh brand.
The aggregate consideration is £12.0 million plus a further payment dependent
upon future performance and expansion of the business over the period to
December 2010. The consideration is payable in a mixture of cash and the issue
of loan notes.
Tile Giant is a rapidly growing retailer of tiles and accessories which trades
from 29 outlets, with an average trading space of approximately 4,000 - 5,000
sqft, predominantly in the North of England and the Midlands. For the financial
year ended 30 April 2007, Tile Giant generated profits before taxation of £0.3
million and, as at that date, had gross assets of £4.3 million.
Tile Giant's estate is relatively young with eleven of the 29 outlets having
opened during 2007. Consequently, as these stores mature, earnings from the
existing portfolio are expected to grow significantly. Current annualised
revenues are approximately £10.6 million with annualised profit before taxation
of approximately £0.9 million.
The acquisition is expected to be earnings neutral in the first year of
ownership and enhancing thereafter.
John Carter, Chief Operating Officer of Travis Perkins said:
'Under the entrepreneurial leadership of its Managing Director, Mo Iqbal, Tile
Giant has grown rapidly and is set to become a major force in this attractive
and growing market. The acquisition of Tile Giant provides potential for
significant further growth in our business and branch network and is consistent
with our strategy of investing in specific adjacent market segments. We welcome
Mo and his management and staff into our Group and look forward to further
growth in the store base of Tile Giant in 2008 and beyond.'
- ends -
There will be a conference call for analysts at 10.00am (GMT) today. To dial
into the conference, please call: 0845 111 4059 (UK Local Call) or, +44 (0)1452
555 566 (International Dial In), quoting Conference ID: 24915097.
Enquiries:
Paul Hampden Smith, Finance Director
Travis Perkins PLC Tel: +44 (0)1604 683 111
David Bick / Mark Longson
Square1 Consulting Limited Tel: +44 (0)20 7929 5599
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