Travis Perkins plugs gap with BSS deal

The proposed tie-up, which has been backed by the board of Leicester-based BSS, will make the Wickes owner a leading player in the trade and retail distribution of plumbing and heating products.

BSS started life as British Steam Specialities in 1899 and currently operates from 439 branches in the UK, generating revenues of 1.35 billion and profits of 49.6 million in the year to March 31.

The cash and shares deal is the largest undertaken by Travis since the 950 million takeover of the Wickes DIY chain in 2005.

Northampton-based Travis, which will gain access to new areas of the plumbing and heating supplies sector, said it had believed for some time that consolidation was vital in the builders' merchant industry.

As well as creating a leading business in the sector, it said it will have the size and scale to purchase products more competitively. It expects to achieve annual cost savings of at least 25 million by 2013, made up of 19 million in purchasing benefits and 6 million from overheads.

Travis Perkins chairman Robert Walker said: "Our respective businesses are complementary and we look forward to working with BSS's customers, suppliers and employees."

BSS, which employs around 5,000 people, adds to Travis's existing 14,500-strong workforce and 1,238 UK sites.

It was founded in Nottingham before moving its head office to Leicester in 1900. BSS has grown through a number of smaller acquisitions in recent years, including the addition of Direct Heating Spares last year.

Today's deal is subject to shareholder approval, although Travis said it had already received undertakings of support from around 35 per cent of BSS investors.