Wolseley completes purchase of Brooks

UK merchanting firm Wolseley has completed the €183 million purchase of the Brooks chain having received approval from the Competition Authority.

Wolseley arranged to sell the freehold and leasehold properties as the deal to buy Brooks was being finalised in July.

At that stage, the firm was expecting to raise at least €53 million by selling the properties. Proceeds are now set to rise to €55 million.

The main site being sold is on Dublin's North Wall Quay, close to the Point Depot in the Docklands.

Wolseley's managing director, Mr Adrian Barden, explained last month that the property would, in time, be dissected by the Luas and thus become less practical a home for a builders merchant.

However, the site would hold considerable appeal for residential developers, particularly in light of its proximity to the Spencer Dock site being developed by Treasury Holdings.

Wolseley declined to name the buyer of the properties, citing a confidentiality agreement.

Likewise, the firm has not specified the sites being sold, although it is known to be retaining the landmark Brooks property on Dublin's Naas Road.

The firm has negotiated a long closing date on the property deal, allowing it to continue occupying the sites for up to three years.

The North Wall property is comprised of three different sites, leaving it possible to vacate different parts at different times.

This could see the Brooks branch that occupies the site being split into a number of parts when it is relocated.

Brooks currently has 18 branches around Ireland, including in the North. The firm, which employs about 430 people, recorded operating profits of €9.4 million on turnover of €195 million last year.

The Brooks deal is one of four purchases completed by Wolseley since the start of August. The acquisitions - which totalled £138 million sterling (€209 million) - also included an Austrian steel stockholder, a US plumbing and heating distributor and a US custom home appliances firm.

When taken together, the four acquisitions would add some £195 million to group turnover in a given year, Wolseley said.