Travis Perkins to buy BSS for £553m

Grant Prior 13 years ago
Share

Builders’ merchant Travis Perkins has launched a £553m takeover bid for heating and plumbing specialist BSS.

Both firms confirmed they were in “advanced discussions” in an announcement to the Stock Exchange this morning.

The cash and shares offer is expected to be accepted by BSS shareholders creating the biggest plumbing and heating trade and retail distribution business in the UK.

BSS currently operates from nearly 400 branches nationwide at its specialist divisions serving the domestic and commercial markets.

Shares in BSS soared more than 30% during morning trading following the announcement.

A Travis Perkins statement said: “The board  has, for some time, believed that further consolidation in the UK building materials merchanting sector offers significant scale benefits in terms of cost savings and improved operational efficiency to those that proactively participate.

“In addition, Travis Perkins believes that the recession has accelerated the long-term trend of customers’ increasing use of different distribution channels to source building materials.

“Against this backdrop, Travis Perkins believes there is a powerful strategic logic which underpins a combination of Travis Perkins’ plumbing and heating activities through its existing distribution and retailing businesses with BSS.”

Travis hopes the deal will give the enlarged group the financial clout to purchase products more competitively and cuts costs by merging locations and combining centralised services.

The statement said: “Having successfully integrated a number of merchanting and retailing businesses into the Travis Perkins group, Travis Perkins believes that similar success can be achieved through a combination with BSS and that it should be well placed to realise synergies arising from purchasing efficiencies and the removal of central costs.”

Latest news

Bouygues/Murphy JV tipped for £2.3bn Thames tunnel job

Frontrunner emerges for Lower Thames Crossing 4.2km tunnel job
2 days ago

Subbies facing squeeze as main contractors tighten belts

Pay disputes increasing as suppliers fear major contractors returning to "bad old ways"
2 days ago

Portview takes control of Fulham Buckingham stand

Fit-out specialist steps in after main contractor failure
2 days ago

Firefighters probe cause of Leeds modular scheme blaze

Fire broke out in timber frame office job at Citu's eco development
2 days ago

Manslaughter probe dropped after demolition deaths

HSE to now lead investigation of 2019 tragedy
2 days ago

Vinci/McAlpine JV to start £105m NHS rehabilitation centre

Treasury clears New Hospital Programme job to start main construction
2 days ago

First sign of price falls for construction products

Supply returns to pre-covid levels as demand drops
3 days ago

Three giant lab buildings approved at £700m Oxford R&D district

Phase 2 Oxford North office and lab buildings to deliver 460,000 sq ft of space
4 days ago

PM fails to quash speculation about plan to axe HS2 phase 2

Sunak ducks future of HS2 question at big net zero Government briefing
3 days ago

Green light for giant North Wales offshore wind farm

Awel y Môr wind farm is the biggest renewable investment in Wales for a decade
3 days ago

T&T breaks £1bn revenue mark for first time

Global consultant enjoys strong growth across all seven geographical regions
3 days ago

Subcontractors and suppliers wanted across Scotland

Constructionline Meet the Buyer event next week at Hampden Park: Register now
3 days ago

Springfield switches strategy as private housing slumps

Scottish house builder turns back to affordable homes market
4 days ago

Sunak details zero carbon targets climbdown

Ban on gas boilers delayed five years; 50% rise in scrappage scheme
4 days ago

RG Group to build tallest student block in the world

Contractor confirmed on 45-storey tower in Leeds
4 days ago

Galliford Try forecasts profit to double next year

Contractor delivers strong results this year and raises expectation for 2024
4 days ago

Strabag hires 15 senior Buckingham Group staff

Austrian civils giant to set up UK building business with pool of staff
5 days ago

Contractors raise pay offer to avert engineering construction strike

Blue book agreement employers up final offer to 10%
4 days ago

Former Mid Group chief joins Tilbury Douglas

Steven Hearn gets new role as regional director of the South East division
4 days ago

Crumbly concrete found at extra 27 schools

A total of 174 schools now found to contain RAAC concrete
5 days ago

Henry Boot Construction struggling to find work

Contracting arm looking to fill order book
5 days ago

More schools found to have crumbly concrete

Surveyors find another 27 schools containing Raac
5 days ago

Buckingham Plant Hire still trading as normal

Separate plant business "not affected" by collapse of contractor
5 days ago

NG Bailey makes £25m loss after Britishvolt shock

Gigafactory loss and problem contracts blow hole in books
6 days ago

Steelwork specialist Billington delivers record first-half

Overseas recruitment push boosts headcount by 10% to drive growth
5 days ago

Vinci wins major St Helens town centre revamp

£90m first phase includes new market hall, 120-bed hotel and over 60 flats
5 days ago

Mace deputy chairman to step down from board

Mace veteran Mark Holmes will leave at the end of the year
5 days ago

CHIC extends bid deadline on £3.2bn new build framework

Closing date for 8-year framework set for 20 October
6 days ago

Work to start this year on Manchester £250m spa resort

Developer Therme gets green light for re-engineered 28-acre Trafford complex
6 days ago

Costain bags £80m water order for upgrades at 16 sites

Severn Trent contracts include work to improve wastewater quality and protect wildlife
6 days ago

Contractor services