Wolseley makes another big acquisition
UK-based Wolseley plc, the world's #1 plumbing and heating supply company and a major building materials supplier as well, announced it will acquire DT Group, a Denmark-based building supplies firm. The deal is for $2.51 billion. The purchase will give Wolseley immediately a major market share in Scandinavia.
Wolseley beats out French rival Saint-Gobain as well as a Sweden-based business supplies group Ahlsell, as well as other private equity groups.
DT Group (formerly known as Danske Traelast) is currently own by UK-based equity fund CVC Capital Partners. CVC bought the group in 2003 for a mere $624 million. Once again, an equity group gets a truly mind-boggling return investment by acting as a market buffer.
DT Group has about 10% of the Scandinavian market, but is nevertheless the leading supplier in Denmark and Sweden, #2 in Finland, and is competitive in Norway. The company has differently-named retail outlets in each country. Wolseley is reportedly looking at other acquisitions in the highly fragmented Scandinavian market.
Wolseley, as we've documented is a true acquisition machine. It has made over 50 acquisitions, mostly of local suppliers, just in the current year.
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