Wolseley is now set to acquire Brooks Brothers, the building supplies business which has been put up for sale by its Finnish owner. The acquisition would represent a significant expansion of the UK company's interests here and spur competition in the sector.
Wolseley and Brooks' owners, the Finnish company UPM-Kymere, have tied up a deal which is now being finalised, according to industry sources. Wolseley was reported to have offered €200 million for Brooks. The two sides have been in exclusive negotiations for some time.
Wolseley, which says it is the world's largest distributor of heating and plumbing products, already owns the Heatmerchants plumbing and tiles business based in Athlone, trading as Tubs and Tiles. However, its acquisition of Brooks would be a significant statement of intent about its interests in Ireland. Brooks is the third largest builders' merchants in the Republic, operating from 16 locations with an annual turnover of €150 million. It also has outlets in the UK.
The acquisition by Wolseley would have significant implications for the sector. Among the others bidders for Brooks was Heiton, the Irish group which owns the Atlantic Homecare chain. Heiton's interest in Brooks is believed to have triggered the bid for it from Grafton, Heiton's main rival in the Irish market and the owner of Woodies DIY Stores and the builders' merchants Chadwick.
Grafton already owns 29 per cent of Heiton but its bid for the remainder - valued at €6.35 per share - was rejected as inadequate by Heiton.
The Takeover Panel has now given Grafton until August 6th to table an offer for Heiton. If it fails to, it will not be able to bid for another 12 months.
Among the other unsuccessful bidders was Irish company Century Homes, which surprised the market with a €120 million offer, a clear signal of its expansion intentions.
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