Builders merchant Travis Perkins has agreed to buy plumbing and heating firm BSS Group for £558m

Travis Perkins has made an offer of 435.8p per share, a 4.7% premium on the 416.2p closing price last Friday.

The company said the deal would help it to achieve cost savings of about £25m by 2013, after one-off costs of about £5m.

Robert Walker, chairman of Travis Perkins, said: “We believe there is a strong strategic rationale for the acquisition of BSS, which will create the leading plumbing and heating trade and retail distribution business in the UK.”

Travis Perkins first signalled its intention to buy BSS in May when it made an indicative offer. Talks have continued since then.