Wolseley expands US operations with New York plumbing business

LEAMINGTON Spa building products firm Wolseley has bought New York plumbing supplies firm Davis & Warshow for £49m.

In the year ended 31 December 2011 the business generated revenue of £72m and trading profit of £5.3m.The net assets acquired were £24m.

Davis & Warshow was founded in 1925 and is headquartered in Maspeth, New York. The company operates from 11 locations, including seven plumbing branches and three stand-alone showrooms. The business will be integrated with Wolseley's US Blended Branches business.

Wolseley CEO Ian Meakins said: "The acquisition of a long-standing, well-respected business such as Davis & Warshow allows us to enter the greater New York City area, where we have historically been under-represented.

"It also provides a solid platform for future growth and expansion in this large and attractive market."

Earlier this month Wolseley has said it will continue to implement measures to cut its cost base. But it said it had seen good growth in the US and Canada.

Source : Andy Coyne - TheBusinessDesk.com
http://www.thebusinessdesk.com/westmidlands/news/382498-wolseley-buys-new-york-plumbing-business-for-49m.html?news_section=28388