Travis Perkins predicts more industry mergers and acquisitions
Chief-exec thinks there will be more takeovers in the building materials sector
The building materials sector is expected to be the subject of
more mergers and acquisitions, according to experts.
Geoff Cooper, chief executive of Travis Perkins, predicts that
more takeovers are likely to occur in the industry as the economic
conditions are ideal for 'consolidation', reports
He told the website: "We haven't seen a move towards
consolidation yet, but it would be quite normal to see
consolidation in an industry as it recovers from recession."
Builders' merchant Travis Perkins is planning to maker a formal
£553 million offer for plumbing specialist BSS within the next
BSS currently has a turnover of around £1.4 billion having
significantly boosted profits in the past six months.
This turnaround in fortune could leave many shareholders puzzled
at the relatively low sale price, while a vote on the deal will be
held in around three months.
The proposed move will help create the largest plumbing and
heating trade and retail distribution business in the UK.