Builders’ merchant Travis Perkins is to buy BSS Group in a deal worth £557.6 million.
According to Travis Perkins, which also runs the Wickes home improvements chain, the deal will create the UK’s leading plumbing and heating distribution business.
The deal, which should be finalised in the fourth quarter, is made up of cash and shares with each BSS share valued at 435.8p – almost 5% higher than Friday’s closing price of 416.2p.
Commenting on the deal, Robert Walker, chairman of Travis Perkins, said: “Our respective businesses are complementary and we look forward to working with BSS’s customers, suppliers and employees.”
Meanwhile, Peter Warry, BSS chairman, said: “The management team and employees have succeeded in building BSS into a leading specialist distributor to trade customers and a market leader in the UK plumbing and heating sector, creating significant value for shareholders.”
As a result of the deal, Travis Perkins expects to achieve savings of around £25 million by 2013.
However, job losses cannot be ruled out, according to chief executive Geoff Cooper.
Meanwhile, the company said the cash part of the deal would be funded from existing debt facilities.
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