Travis in £553m bid talks for BSS

Builders' merchant Travis Perkins is in "advanced" talks over a £553m takeover of plumbing specialist BSS, it was announced yesterday.

The groups claim the deal would create Britain's leading plumbing and heating trade and retail distribution business and give them the scale and might to compete better in the market.

BSS, which started life as British Steam Specialities in 1899, said it was prepared to recommend the proposal, worth 433p a share, and had already spoken to major investors, who had also indicated their support.

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The deal would be the largest undertaken by Travis since the 950m takeover of the Wickes DIY chain in 2005.

Travis said it had believed for some time that consolidation was vital in the builders' merchant sector.

It added the recession had brought the need to the fore, "accelerating the long-term trend for customers' increasing use of different distribution channels to source buildings materials".

It added: "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."

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BSS is headquartered in Leicester and employs nearly 5,000 staff across 439 branches in the UK.

The group has come under pressure during the economic woes, revealing earlier this week that annual profits fell 24 per cent to 44.2m.