21/3/2007
The BSS Group PLC ("BSS" or the "Group"), a leading distributor of heating, plumbing and pipeline equipment to the industrial and domestic construction and maintenance markets, is pleased to announce that it has agreed to acquire the business and assets of BuckHickman from Premier Farnell plc for a cash consideration of £27 million on a cash and debt free basis. The transaction is expected to complete within four weeks, following a period of consultation with the employees of BuckHickman.
BuckHickman is a leading UK distributor of tools and other products for engineering maintenance and safety. BuckHickman distributes leading brand name products as well as products under its own well-established brand "Roebuck". BuckHickman has been a well known player in the industrial tools market for over 175 years. The customers of BuckHickman are served through a network of 30 outlets and a national distribution centre in Coventry. In the year ended 28 January 2007, BuckHickman made an operating loss of £0.8 million on turnover of £99.8 million and had gross assets of £35.4 million and net assets of £18.2 million.
The Board of BSS sees the acquisition of BuckHickman as a further important step in strengthening the Group’s product offering. It builds on the position BSS gained by the successful acquisition of Price Tools in March 2006 and significantly expands the geographic reach and product portfolio the Group offers in the tools and safety lines. The Group will give BuckHickman access to the growing construction sector through the PTS and BSS branch network, complementing BuckHickman’s strengths in the industrial maintenance, repair and overhaul sector. It is expected that the acquisition will be earnings neutral in the current financial year and earnings enhancing thereafter. BuckHickman and Price Tools will form the basis of a third business division sitting alongside the existing Industrial and Domestic divisions.
Commenting on the acquisition, Gavin Slark, Chief Executive of BSS, said:
"I am delighted that we have secured one of the leading names in the tools and safety sector. BuckHickman has a long heritage in this sector and we have a clear vision of BuckHickman as a branch-based, sales-led, customer-orientated business. With the hard work and support of the BuckHickman team, we are confident we will make the business a great success."
BSS will issue a trading update on Thursday 29 March, before the start of its close period.
Contacts:
The BSS Group PLC
Tel: 0116 256 7038
Gavin Slark, Chief Executive
Roddy Murray, Finance Director
Hawkpoint Partners Limited
Tel: 0207 665 4500
David Renton
Morgan Jones
Hogarth Partnership Limited
Tel: 0207 357 9447
Andrew Jaques
Charlie Field
Hawkpoint Partners Limited, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for BSS and no one else in connection with the acquisition and will not be responsible to anyone other than BSS for providing the protections afforded to its customers or for providing advice in relation to the acquisition or in relation to the contents of this announcement or any transaction or arrangement referred to herein.
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