Travis Perkins ties up £558m BSS buy

5th Jul 2010 07:08

Wickes owner Travis Perkins has got its name on BSS after the pair agreed a cash and share bid that values each BSS Share at 435.8p and the plumbing supplies firm at approximately £558m in total.The terms are in line with the initial approach from Travis in May. BSS shareholders will receive 232.91p in cash and 0.2608 in new Travis Perkins shares, valued at 196.8p. They will also get the recent BSS final dividend, worth an additional 6.09p. Travis said "a powerful strategic logic underpins the combination of BSS and Travis Perkins' existing distribution and retailing businesses in plumbing and heating".Annual pre-tax cost savings of at least £25m in 2013 are forecast, with Travis expecting the deal to deliver "materially enhanced earnings in 2011," the first full year after completion."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," Robert Walker, Travis' chairman added.