Wolseley juggernaut rolls on as it acquires one of the UK's best established hire firms.
Materials firm Wolseley has bought tool hire firm Brandon Hire for £71.9m.
Wolseley Bristol Limited ('Wolseley Acquisitions'), a wholly-owned subsidiary of Wolseley specifically formed for the purpose of making the offer, has made an offer of 212p in cash for each Brandon Hire share.
In addition Brandon Hire Shareholders will be entitled to receive and retain the final dividend of 2.9p per Brandon Hire Share for the year ended 31 December 2005 payable on 3 May 2006 to Brandon Hire Shareholders on the register at the close of business on 31 March 2006.
The firm said: "Wolseley Acquisitions has received irrevocable undertakings to accept the offer in respect of 12,279,561 Brandon Hire Shares representing approximately 36.2% of the existing issued ordinary share capital."
The board of Wolseley believes the offer is an attractive opportunity for Wolseley to expand in a complementary business area and will provide significant benefits. It said that Brandon Hire's hire business was an established business with strong growth potential.
Commenting on the offer, Charles Banks, chief executive officer of Wolseley, said: "We are delighted to have reached agreement with the board of Brandon Hire."
"The transaction represents a further step in our strategy to broaden our product and geographic reach, by enhancing our hire offering across the UK. We look forward to working with the Brandon Hire team to realise the potential that exists to grow the combined business, through sharing best practice and increased customer benefits."