Toolstation sells lightside building material products and has grown rapidly since Travis Perkins took its first interest in 2008 from 12 outlets to 103 branches. It also has a significant catalogue and internet retailing operation.
In April 2008, Travis Perkins paid £18m for a 30% equity interest in the company together with an option to buy the remaining shares. Toolstation currently has gross assets of £34m and generated Ebitda of £5m in the financial year to 31 December 2011.
Travis Perkins is paying the Goddard-Watts family a further £24m to take full ownership of Toolstation, plus a further payment that depends on future performance and expansion of the business by December 2013.
The management team at Toolstation remains unchanged.
Acquisition of Toolstation represents an expansion of Travis Perkins’ consumer division, currently comprising Wickes, the home improvement retailer and Tile Giant, a ceramic tile merchant chain. However, the group hopes that trade customers will also benefit.
Travis Perkins chief executive Geoff Cooper said: “Toolstation is a great addition to our consumer division and will add to our growth in market share and returns. Following this acquisition of the outstanding equity, we will look to further exploit Toolstation as part of our service to the trade and to DIY customers."
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