Wolseley offers £390m for French company

Reading-based heating and plumbing materials distributor Wolseley has made a £390m offer today (Thursday) for the acquisition of French company Pinault Bois & Matériaux (PBM).

PBM is the second largest heavyside distributor in France with a market share of just over 8% on a national basis. Approximately 85% of PBM's business relates to the distribution of building materials and 15% to the importation and distribution of timber. For the year ended 31 December 2002, PBM reported sales of £897m and operating profit, before goodwill amortisation, of £49.9m.

The acquisition, conditional upon approval of the appropriate competition authorities, will be submitted to PBM's workers' councils by 30 April 2003 and will be financed from Wolseley's existing resources.

Charles Banks, group chief executive of Wolseley, said: "This offer is in line with our strategy to expand our operations in continental Europe. It would be a substantial acquisition for Wolseley and would add significant weight to our European presence.

" We believe that PBM will complement our existing French operations and provide an opportunity to create synergies as well as a platform for further organic growth."

The purchase would be Wolseley's 16th acquisition this year, taking total acquisition spend in the current financial year to £462m.