Builders’ merchant Travis Perkins will buy plumbing supplies group BSS for £557.6 million after the two firms reached an agreement on the deal, which has been in advance discussions since May.
The acquisition - subject to approval by both companies’ shareholders, the court and the Office of Fair Trading - is expected to be completed by the middle of the fourth quarter of 2010.
The deal will allow Travis Perkins, which also owns the Wickes, City Plumbing and Keyline chains, to purchase products more competitively and is expected to deliver annual pre-tax cost savings of at least £25m in 2013.
Travis Perkins chairman Robert Walker said: “We believe that there is a strong strategic rationale for the acquisition of BSS which will create the leading plumbing and heating trade and retail distribution business in the UK. Our respective businesses are complementary and we look forward to working with BSS’s customers, suppliers and employees.”