Travis Perkins Agrees To Buy BSS Group For GBP557.6 Million

5th Jul 2010 07:28

By Jonathan Buck Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Builders' merchant and home improvement retailer Travis Perkins PLC (TPK.LN) Monday said it had agreed to acquire specialist distributor BSS Group PLC (BTSM.LN) for GBP557.6 million, creating the leading plumbing and heating trade and retail distribution business in the U.K. The deal will bring Travis Perkins operational and financial size and scale to purchase products more competitively and secure the benefits of global sourcing, and allow it to service customers more efficiently locally and nationally. "Our respective businesses are complementary and we look forward to working with BSS's customers, suppliers and employees," said Travis Perkins Chairman Robert Walker in a statement. "We are confident that this transaction can deliver significant value for the shareholders in the enlarged group." Travis Perkins will pay 435.8 pence per BSS share. That comprises 232.91 pence in cash, 0.2608 new Travis Perkins shares valued at 196.8 pence based on the closing price Friday of 754.5 pence per share, and payment of the BSS final dividend for the year ended March 31 of 6.09 pence. A mix-and-match facility and a loan note alternative also are available. The price represents a premium of 4.7% to the closing price of BSS shares Friday of 416.2 pence and a premium of 34% to the closing price May 27, the last business day before the two companies disclosed advanced discussions about a possible offer. -By Jonathan Buck, Dow Jones Newswires; +44 (0)207 842 9237; [email protected] (END) Dow Jones Newswires July 05, 2010 02:28 ET (06:28 GMT)