Brammer powers up with £27m swoop for TP business

Brammer, the technical distributor, is buying a leading tools business for £27.6m.

The listed Altrincham-based firm is acquiring Buck & Hickman from Travis Perkins and is funding the majority of the cost via a £25m share placing.

Coventry-based Buck & Hickman offers a range of more than 60,000 branded and own-brand industrial and maintenance products, with just under 14,000 of those products bearing its own industrial brand 'Roebuck'.

In the year to the end of March Buck & Hickman generated revenues of £94.8m (2010: £80.7m), and adjusted EBTIDA of £1.9m (2010: £0.17m).

Revenue and adjusted EBITDA for 2011 are forecast by Buck & Hickman's management team to be approximately £105m and £3.2m respectively.

The key focus of Buck & Hichman's product range is hand and power tools, janitorial, health & safety and personal protective equipment items. It has more than 8,000 customers, ranging from multinationals to small businesses.

Brammer chief executive Ian Fraser heralded the deal as an "excellent strategic acquisition" which will allow Brammer to enhance its position significantly in £2.2bn UK tools and general maintenance market.

"We look forward to working alongside Buck & Hickman's highly experienced and knowledgeable team. I am confident that together we can drive the business forward and that Brammer will be a stronger group as a result.”

Source : Chris Barry – The Business Desk
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