RNS Number:4841G
Focus Wickes PLC
16 December 2004
FOCUS WICKES GROUP LTD
SALE OF WICKES
London, 16 December, 2004 - Focus Wickes Group Ltd ("Focus Wickes" or the "Group
"), the second largest DIY retailer in the UK, announced today the sale of its
Wickes division to Travis Perkins plc for a cash consideration of #950 million.
The transaction is conditional upon shareholder approval and receipt of OFT
clearance.
The Wickes division is the third largest DIY retailer in the UK and targets the
small tradesman and serious DIY customer. It operates from 172 stores and
generated total sales of #911.1 million in the fiscal year ending 31 October
2004.
Focus Wickes expects to use a part of the proceeds to redeem the #190 million
10% Mezzanine Notes due 2011 and the Euro140 million 9.25% Mezzanine Notes due 2011
issued by Focus Wickes (Finance) plc. Further details about any proposed
redemption of the Mezzanine Notes, including a notice of redemption (if
appropriate), will be issued or made available upon completion of the sale of
the Wickes division.
Focus Wickes acquired Wickes PLC, then comprising 131 stores, in September 2000.
Since then Wickes has grown significantly, driven by both sustained
like-for-like sales growth and an accelerated new-store opening programme. This
programme, which included the conversion of 36 Focus stores to the Wickes
format, increased net selling space by over 50% during the period. The Wickes
management team has realised benefits from a renewal programme, new products,
its space gains initiative and the introduction of garden project centres.
Following the disposal of Wickes, Focus Wickes will be re-named Focus. It will
comprise the Focus division, the fourth largest DIY retailer in the UK, which
targets customers seeking to undertake light home improvement and core
maintenance projects. Under a new management team Focus has improved sales and
profits in its existing portfolio by introducing new product ranges, improving
stock availability and through competitive pricing. Focus operates from 256
stores and generated total sales of #828 million in the fiscal year ending 31
October 2004. Following the sale of Wickes, Bill Archer will continue as
Executive Chairman of the Focus business. Geoff Wilson will also continue as
Deputy Chairman and Steve Johnson will be CEO of the business. Funds advised by
Apax Partners and Duke Street will remain as substantial shareholders.
Bill Archer, Chairman and CEO of Focus Wickes, said: "We have successfully
transformed the performance and scale of the Wickes business since acquisition
four years ago. The two divisions are both well placed to continue their
development within separate organisations. DIY continues to be a high growth
and resilient market. Our Focus business is performing well and we have a
strategic opportunity to build further value by actively investing in new stores
and refits within the existing estate."
Alex Fortescue, Director of Apax Partners, said: "Wickes has achieved
spectacular growth since acquisition through store roll-out, conversion of Focus
stores to the Wickes format and the development of Wickes Extra. What has been
achieved is a great credit to Bill Archer and the rest of the management team.
We are excited by the prospects for further development and growth of the Focus
business led by Steve Johnson and look forward to working with the team to
maximize the potential of the business over the next few years."
Edmund Truell, Chairman of Duke Street Capital, said: "Focus Wickes is an iconic
buy and build story. Since we first backed Bill Archer and Geoff Wilson in 1988
the business has been transformed both through sound retail management and
strategic acquisitions. We remain very excited by the prospects for Focus and
we look forward to continuing to help the business reach its true potential."
Goldman Sachs International is acting as sole financial adviser to Focus Wickes.
- END -
Enquiries:
Apax Partners
Clare Sillars
+44 20 7872 6476
Duke Street Capital
Edmund Truell
+44 20 7451 6600
Equus (PR advisors to Duke Street)
Piers Hooper / Corinne Daniels
+44 207 223 1100
gcg hudson sandler (PR advisors to Focus Wickes)
Andrew Hayes / Jessica Rouleau
+44 020 7796 4133
Notes to Editors
About Focus Wickes (www.focusdiy.co.uk)
Focus Wickes is the second largest DIY retailer in the UK in terms of turnover.
The Focus and Wickes formats offer an extensive range of home improvement
products to both DIY and trade customers in the UK Repair, Maintenance and
Improvement ("RMI") market.
About Apax Partners (www.apax.com)
Apax Partners is one of the world's leading private equity investment groups,
operating across Europe, Israel and the United States. With over 30 years of
direct investing experience, Apax Partners' Funds provide long-term equity
financing to build and strengthen world-class companies.
Apax Partners' Funds invest in companies across its 6 chosen global sectors of
retail and consumer; information technology, telecommunications, healthcare,
media and financial services. Some of Apax Partners' Funds retail and consumer
investments include Alain Afflelou, Autobahn Tank & Rast, New Look, Nordsee,
Phillips-Van Heusen, Sephora, Sunglass Hut and Waterstone's.
About Duke Street Capital (www.dukestreetcapital.com)
The Duke Street Capital group is an independent private equity group focusing on
mid market leveraged buy-outs, with offices in London and Paris. Duke Street
Capital Private Equity (DSC) invests in established, mid-market UK and French
businesses with an enterprise value of up to Euro300 million. DSC has raised 5
private equity funds to date and has managed in excess of Euro2 billion.
DSC considers all investment opportunities, but particularly focuses on the
retail & consumer, leisure, healthcare, financial services and business services
sectors. DSC seeks to build strong working relationships with high-quality
management teams in investee companies. It uses buy-and-build strategies to
transform the businesses of its investments. It offers financial support and
industrial management expertise, via its Board of Operating Partners, to enable
the transformation of investee companies into market leaders.
Goldman Sachs International is acting exclusively for Focus Wickes in connection
with the transaction and will not be responsible to anyone other than Focus
Wickes for providing the protections afforded to its customers or for providing
advice in relation to the transaction.
This information is provided by RNS
The company news service from the London Stock Exchange
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