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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
Christmas at Chatsworth: review of The Cavendish Hotel at BaslowMoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
