Travis Perkins buys BSS Group in £557.6m deal

Wickes store
Image caption Travis Perkins owns Wickes in the UK

Builders' merchant Travis Perkins has agreed a £557.6m deal to buy plumbing and heating company BSS Group.

The offer, made up of cash and shares, values each BSS share at 435.8 pence, a 4.7% premium on Friday's closing price of 416.2p.

The firms said the deal would create the UK's leading plumbing and heating distribution business.

Travis Perkins said it believed it could achieve pre-tax savings of at least £25m in 2013 through the deal.

"Our respective businesses are complementary and we look forward to working with BSS's customers, suppliers and employees," said Robert Walker, chairman of Travis Perkins.

Peter Warry, chairman of BSS, added: "The management team and employees have succeeded in building BSS into a leading specialist distributor to trade customers and a market leader in the UK plumbing and heating sector, creating significant value for shareholders.

"The BSS board believes that Travis Perkins' offer recognises this value and gives our shareholders the opportunity to share in the future success of the enlarged group."

Travis Perkins had first signalled its intention to buy BSS in May when it made an indicative offer.

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