Wolseley aims to make gains from drains after £30m Burdens deal

BUILDING and plumbing merchant chain Wolseley has agreed to acquire the property, stock and vehicle assets of 22 sites from Burdens, a supplier of drainage and civil engineering products, for £30m.

The deal will see 600 Burdens staff transfer to the Leamington Spa firm and Wolseley gain exclusive use of the Burdens name in the UK.

The Burdens sites – which include the Drains Center brand – generated revenue from ongoing business in the three  months ended September 30  of approximately £40m. The sites will be integrated with Wolseley UK’s core businesses.

Ian Meakins, chief executive of Wolseley, said: “Like our other UK businesses, Burdens has a well established reputation. The acquisition will extend the reach of the group’s successful utilities business in the UK and gain one of the leading positions in the underground drainage sector.”

Jeremy Burden, chief executive of Bristol-based WT Burden Ltd, said: “The move will enable the Burdens business to be taken to the next stage of its development and will provide it with the level of focus required to continue to realise its full potential in the UK market.

“We are confident that the transaction will represent an opportunity to enhance service levels to both customers and suppliers and is positive for the employees involved.”

Wolseley will now make a filing with the UK’s Office of Fair Trading to clear the acqusisition.