Saint-Gobain Signs Agreement with Wolseley to Acquire the Build Center Network and Brossette
Saint-Gobain has signed an agreement with UK building materials distributor Wolseley for the acquisition of its British Build Center network and its French subsidiary Brossette.
Build Center Acquisition
Build Center is the UK's fourth largest general builders' merchant. With a network of 148 branches located across the UK, including a large concentration in the dynamic South East, Build Center offers an excellent geographic fit with the Jewson network.
It reported revenue of GBP316 million (€360 million) for the fiscal year ended July 31, 2010, with 1,500 employees.
Representing a total amount of GBP145 million (€165 million) - including 86 real estate locations-, the acquisition will enable Jewson to consolidate its position as leading general builders' merchant in the UK.
Exclusive negotiations for the Brossette Acquisition
Saint-Gobain and Wolseley entered exclusive negotiations for the acquisition of Brossette.
Specializing in the distribution of plumbing, heating and sanitary products in France, the Brossette brand has a very good reputation among the market. Backed by a network of 361 outlets across the country, it also promises a strong geographic fit with the French plumbing, heating and sanitary business of Saint-Gobain Building Distribution Sector, which primarily operates under the Cedeo brand.
Brossette generated €714 million in revenue in the fiscal year ended July 31, 2010 and employs 2,650 people.
The €186-million acquisition would enable Saint-Gobain to enhance its position in the plumbing, heating and sanitary distribution business in France and more broadly in this business in Europe, where it already has prime positions thanks in particular to Dahl in the Nordic countries and Graham in the United Kingdom.
Pierre-André de Chalendar, Chairman and CEO of Saint-Gobain commented that:
"These two acquisitions, which will add more than €1 billion of sales, are perfectly in line with the strategy of Saint-Gobain. They will further develop our Building Distribution Sector and complement the geographical presence in two of the Sector's key businesses - general building distribution in the UK and plumbing, heating and sanitary products in France -, while creatingsignificant synergies, particularly in the areas of purchasing and logistics."
These operations are subject to the approval of the competition authorities.