Saint-Gobain takes over Build Center

The owner of builders’ merchant Jewson added another 148 branches to its estate yesterday with the acquisition of Wolseley’s Build Center business.

France’s Saint-Gobain currently serves the UK building industry through 900 sites, including more than 500 branches under the Jewson brand and others such as Tile Base and plumbers merchant Graham.

It is paying Wolseley £145m for Build Center, although the deal will be subject to competition clearance.

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The sale of the UK’s fourth largest general builders’ merchant forms part of an ongoing disposal programme by Wolseley as it looks to focus on core markets such as the supply of building materials in France and products for plumbing and heating in the UK.

Globally, it generates revenues of more than £13.2bn and employs around 47,000 people in 25 countries. Saint-Gobain is also in exclusive talks with Wolseley over a deal to buy its Brossette plumbing and heating supplies business in France. Chief executive Pierre-Andre de Chalendar said: “These two acquisitions, which will add more than one billion euros of sales, are perfectly in line with the strategy of Saint-Gobain.”

Wolseley is also thought to be looking for a buyer for consumer-focused Bathstore, which has seen “significantly” lower revenues. The Build Center business has 1,500 staff and generated sales of £316m in the year to July 2010.

Wolseley UK’s managing director Steve Ashmore said: “I truly believe that selling these businesses sets them free to realise their full potential.

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“Equally importantly, it enables Wolseley UK to provide our remaining businesses with the level of investment and dedication needed to achieve the aim of becoming the best merchant in all our chosen markets.”

Wolseley UK anticipates that the sale of Build Center will complete shortly after the European Commission has concluded its review, which is expected to be in the last quarter of 2011.

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