Saint-Gobain to acquire two distribution units of Wolseley for $504 million
25 Jul 2011
French construction material firm Saint-Gobain today agreed to buy two distribution units from UK-based plumbing and heating products distributor Wolseley Plc, for €351 million ($504 million).
Saint-Gobain will buy Build Centre, a retailer of building materials with branches all over the UK, for €165 million and Brossette, the French unit of Wolseley, for €186 million.
Build Centre had net income of £4 million on revenues of £294 million last financial year ended 30 June 2011 while Brossette had net income of £5 million on revenues of £590 million.
Build Centre is the UK's fourth largest general builders' merchant. With a network of 148 branches located across the UK, the company offers an excellent geographic fit with Jewson network, Saint-Gobain's engineered timber products division in the UK.
Specialising in the distribution of plumbing, heating and sanitary products in France, the Brossette brand has a network of 361 outlets across the country. It is a strong geographic fit with the French plumbing, heating and sanitary business of Saint-Gobain Building Distribution Sector, which primarily operates under the Cedeo brand.
The acquisition of Brossette brand would enable Saint-Gobain to enhance its position in the plumbing, heating and sanitary distribution business in France and more broadly in this business in Europe, where it already holds prime positions.
Wolseley, the world's largest heating and plumbing distributor, said the sales were the last major disposals following last year's strategic review, which aimed to focus the company upon core businesses, including a renewed focus upon its Plumb Centre, Parts Centre and Climate Centre business in the UK.
