The owner of the Wickes home improvement store chain, Travis Perkins Plc, has negotiated and agreed to purchase BSS Group Plc to create the largest plumbing and heating chain in the UK. The purchase of BSS Group will cost £557.6 million pounds.
Travis Perkins Plc will pay BSS shareholders 232.91 pence cash and 0.2608 new shares for each BSS share. This values the business at 435.8 pence, based on Travis Perkins’ Friday closing price of 754.5 p.
Robert Walker, Travis Perkins Chairman, said: “We believe that there is a strong strategic rationale for the acquisition of BSS…We are confident that this transaction can deliver significant value for the shareholders in the enlarged group.
“Our respective businesses are complementary and we look forward to working with BSS customers, suppliers and employees.”
Travis Perkins also owns City Plumbing and Keyline chains as well its own stores and Wickes. Assisting in the acquisition were HSBC and Nomura which advised Travis Perkins and Lazard and RBS Hoare Govett advised BSS.