Coventry tools firm acquired in £27m deal
COVENTRY-based power tools supplier Buck & Hickman has been acquired by industrial supplies group Brammer in a deal worth £27.6m.
Brammer, whose UK distribution centre is in Wolverhampton, is acquiring the firm from Travis Perkins and is funding the majority of the cost via a £25m share placing.
Founded in the 1830s, Buck & Hickman was acquired by BSS Group in April 2007 before becoming part of Travis Perkins.
The business supplies a range of more than 60,000 branded and own-brand industrial and maintenance products, with just under 14,000 of these bearing its own industrial brand ‘Roebuck’.
Customers are serviced through a nationwide network of 28 branches and a 90,000 sq ft national distribution centre in Coventry, together with its own fleet of approximately 90 commercial vehicles.
In the year to the end of March Buck & Hickman, generated revenues of £94.8m (2010: £80.7 million), 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 and safety and personal protective equipment items. It has more than 8,000 customers, ranging from multinationals to small businesses.
Ian Fraser, chief executive officer of Brammer, said: “Buck & Hickman is an excellent strategic acquisition for the group, providing us with the opportunity to enhance our position significantly in the approximate £2.2bn UK tools and general maintenance , repair and operations market.
“It will also increase our critical mass and generate additional value from cross-selling initiatives in the larger European market place, which is hugely fragmented, and which we estimate to be worth at least €10bn per annum.
“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.”
The acquisition supports Brammer’s growth strategy and provides the group with: a top five presence in a fragmented UK tools and general maintenance market; increased critical mass in the European market; cross-selling opportunities; an extended product range; access to a large number of new Buck & Hickman customers, including those in key markets sectors such as aerospace, construction and rail where Brammer is currently under-represented.
The Brammer board has put together a detailed integration plan, which has identified annualised synergies of £7.5m to be realised by the end of 2013.
