Travis Perkins considers move for UK DIY chain

British builders’ merchant Travis Perkins was today said to be mulling a bid for DIY chain Focus Wickes that could shoot it into the FTSE 100 Index.

The Northampton-based group, which sells materials including timber and plumbing and heating equipment to builders through 740 stores, has reportedly had its sights on the UK’s second biggest DIY chain for some time.

The company-transforming move would allow Travis to cut out major costs and provide a complete service catering for builders and DIY fans alike.

According to the Sunday Times, Travis chief executive Francis McKay has expressed his interest in the 428-store business but has not yet made a formal decision to bid.

Focus Wickes, which is owned by private equity houses Duke Street and Apax, is said to have called in investment bank Goldman Sachs to examine options including a break-up of the company or a sale.

Analysts have put a £1.5 billion price tag on the business, which was only founded in 1987 and grew substantially through the acquisitions of Do It All, Wickes and Great Mills.

Focus is aimed at the DIY market, while Wickes is used by builders and sells more specialist materials.

It was also reported by the Sunday Telegraph that Travis is considering a bid for just the Wickes chain, which analysts believe could be sold for up to £600 million.

Travis has been pursuing growth through an aggressive acquisition strategy, boosting its network from just 610 stores in 2002.

It spent £26.5 million for 53 Jayhard plumbing and heating outlets in August last year and followed that up with a £23.5 million deal for 12 B&G sites in south London and Surrey.

In September it posted an 18% hike in half-yearly profits to £95.3 million, reflecting the benefits of this acquisitions spree. At the time it said it remained committed to its expansion programme and saw “clear potential for a significant increase in the number of branches”.

Nobody was available to comment from either company today.