Travis Perkins Plc Recommended Cash And Shares -2-

5th Jul 2010 07:00

| | resolutions to effect the Scheme in respect of 283,648 | | | BSS Shares and 43,215,554 BSS Shares respectively, | | | representing, in aggregate, approximately 35.0 per cent. | | | of the existing issued share capital of BSS | +----+-----------------------------------------------------------+ | | | +----+-----------------------------------------------------------+ | * | It is currently intended that the Acquisition will be | | | effected by way of a scheme of arrangement of BSS (see | | | Note 2) | +----+-----------------------------------------------------------+ | | | +----+-----------------------------------------------------------+ | * | The Acquisition is subject to approval by shareholders of | | | Travis Perkins and BSS, the Court and the OFT and is | | | expected to become effective in the middle of the fourth | | | quarter of 2010 | +----+----+------------------------------------------------------+ Commenting on the Acquisition, Robert Walker, Chairman of Travis Perkins said: "We believe that there is a strong strategic rationale for the acquisition of BSS which will create the leading plumbing and heating trade and retail distribution business in the UK. Our respective businesses are complementary and we look forward to working with BSS's customers, suppliers and employees. We are confident that this transaction can deliver significant value for the shareholders in the Enlarged Group." Commenting on the Acquisition, Peter Warry, Chairman of BSS said: "The management team and employees have succeeded in building BSS into a leading specialist distributor to trade customers and a market leader in the UK plumbing and heating sector, creating significant value for shareholders. The BSS Board believes that Travis Perkins' offer recognises this value and gives our shareholders the opportunity to share in the future success of the Enlarged Group." HSBC and Nomura are acting as joint financial advisers to Travis Perkins. Citi and Credit Suisse are acting as joint corporate brokers to Travis Perkins. Lazard is acting as lead financial adviser to BSS. RBS Hoare Govett is acting as corporate broker and financial adviser to BSS. This summary should be read in conjunction with, and is subject to, the full text of the announcement set out in Part II. In particular, the Acquisition is subject to the Conditions and further terms set out in Appendix I to this announcement and the terms and conditions to be set out in the Scheme Document when issued. The sources and bases of certain financial information contained in this summary and the following announcement are set out in Appendix II. Appendix III contains definitions of certain terms used in this summary and the following announcement. +--------+---------------------------------------------------------+ | Notes: | (1) The anticipated operational cost savings have been | | | calculated on the basis of the existing cost and | | | operating structures of the Travis Perkins and BSS | | | Groups. These statements of estimated cost savings and | | | one-off costs for achieving them relate to future | | | actions and circumstances which, by their nature, | | | involve risks, uncertainties and other factors. As a | | | result, the cost savings referred to may not be | | | achieved, or those achieved could be materially | | | different from those estimated. | +--------+---------------------------------------------------------+ | | | +--------+---------------------------------------------------------+ | | The statement that the Acquisition is expected to | | | deliver materially enhanced earnings for Travis Perkins | | | in 2011 (the first full year following completion of | | | the Acquisition) relates to future actions and | | | circumstances, which, by their nature, involve risks, | | | uncertainties and other factors. | +--------+---------------------------------------------------------+ | | | +--------+---------------------------------------------------------+ | | These statements do not constitute a profit forecast | | | and should not be interpreted to mean that earnings for | | | that year or any subsequent financial period would | | | necessarily match or be greater than those for any | | | preceding financial period. | +--------+---------------------------------------------------------+ | | | +--------+---------------------------------------------------------+ | | (2) Travis Perkins reserves the right, at its sole | | | discretion and subject (if required) to agreement with | | | the Panel, to seek to implement the Acquisition by way | | | of an Offer. | +--------+---------------------------------------------------------+ Institutional investors and analysts are invited to attend a presentation at 8.45am (UK time) today at the offices of Credit Suisse, One Cabot Square, Canary Wharf, London, E14 4QJ. Dial-in details to the presentation are as follows: +-----------------+----------------------------------------------+ | UK: | 0800 073 0436 | +-----------------+----------------------------------------------+ | International: | +44 (0)1452 568 442 | +-----------------+----------------------------------------------+ | Conference ID: | 85926911 | +-----------------+----------------------------------------------+ +-------------------------------------------+--------------------+ | Enquiries | | +-------------------------------------------+--------------------+ | | | +-------------------------------------------+--------------------+ | Travis Perkins | | +-------------------------------------------+--------------------+ | | | +-------------------------------------------+--------------------+ | Travis Perkins plc | +44 (0)1604 683 | | | 222 | +-------------------------------------------+--------------------+ | Geoff Cooper, Chief Executive Officer | | | Paul Hampden Smith, Finance Director | | +-------------------------------------------+--------------------+ | | | +-------------------------------------------+--------------------+ | HSBC Bank plc (Joint Financial Adviser) | +44 (0)20 7991 | | | 8888 | +-------------------------------------------+--------------------+ | Charles Packshaw | | | Simon Cloke | | | James Pincus | | +-------------------------------------------+--------------------+ | | | +-------------------------------------------+--------------------+ | Nomura (Joint Financial Adviser) | +44 (0)20 7102 | | | 1000 | +-------------------------------------------+--------------------+ | Michael Pescod | | | Andrew McNaught | | | Oliver Tucker | | +-------------------------------------------+--------------------+ | | | +-------------------------------------------+--------------------+ | Credit Suisse (Joint Corporate Broker) | +44 (0)20 7888 | | | 8888 | +-------------------------------------------+--------------------+ | John Hannaford | | | Will MacLaren | | +-------------------------------------------+--------------------+ | | | +-------------------------------------------+--------------------+ | Citi (Joint Corporate Broker) | +44 (0)20 7986 | | | 4000 | +-------------------------------------------+--------------------+ | Andrew Seaton | | | Robert Redshaw | | +-------------------------------------------+--------------------+ | | | +-------------------------------------------+--------------------+ | Square1 Consulting (PR Adviser) | +44 (0)20 7929 | | David Bick | 5599 | (MORE TO FOLLOW) Dow Jones Newswires July 05, 2010 02:00 ET (06:00 GMT)