Wolseley acquires New York plumbing supplier

Wolseley, the FTSE 100 plumbers' merchant, has acquired Davis & Warshow, a residential and commercial plumbing supplier in the New York metropolitan area.

The purchase was made for a cash consideration of £49m.

In the year ended December 31st 2011 the business generated revenue of £72m and trading profit of £5.3m. The net assets acquired were £24m.

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The business, which operates from 11 locations, including seven plumbing branches and three stand alone showrooms, will be integrated with Wolseley's US Blended Branches business.

"The acquisition of a long-standing, well-respected business such as Davis & Warshow allows us to enter the greater New York City area, where we have historically been under-represented," said Wolseley Chief Executive Officer Ian Meakins.

"It also provides a solid platform for future growth and expansion in this large and attractive market."

The share price nudged 0.07% higher to 2,690p in the hour following the announcement.

NR