Plumbing Products & PVF Distribution Archives

Wolseley Sales Hit by U.S. Housing Slump

Wolseley revenues for the six months ended Jan. 31, 2008, increased 2% to £8.02 billion (US$16 billion at current exchange rates) Profit fell 23.1% for the period primarily due to losses at Stock Building Supply in the U.S.

Where Stock is concerned, the market has deteriorated considerably. It’s beyond anything that we’ve experienced, in my view, since World War II. If you look at housing starts, they’ve dropped from 2.2 million to under 1 million. We’re in a situation where we’ve made significant headcount and cost reductions,”said Chip Hornsby, Wolseley CEO.

“Now we’ve got to be able to begin to anticipate what’s going to happen next, particularly where that organization is concerned. So we’ve gone in and begun to look at it more from a strategic standpoint …

March 17, 2008

Building Materials/Construction

Ferguson, Stock Building Supply Make Acquisitions

Wolseley plc, global distributor of plumbing and heating products and a supplier of building materials, announced five bolt-on acquisitions for £33 million (US$66.5 million at current exchange rates).

In a full year, these bolt-on acquisitions are expected to add £45 million (US$90.7 million) to total revenue.

Since Aug. 1, 2007, the start of Wolseley’s financial year, a total of 15 bolt-on acquisitions in Europe and North America have been completed for £203 million. These 15 acquisitions are expected to add £263 million (US$530 million) to Group revenue in a full year.

North America
Ferguson has acquired C.B. Group, Inc. trading as JC Plumbing Supply. JC Plumbing is a distributor operating from two facilities in …

March 10, 2008

Companies

WinWholesale Opens Winair Companies in Texas

WinWholesale, Dayton, OH, has opened Gainesville Winair Company and Midland Winair Company in Texas to supply HVAC contractors in the northeast and western areas of the state.

Gainesville’s market area also covers part of southern Oklahoma while Midland’s market extends into southeastern New Mexico.

The two locations make five new Win locations opened in the country this year.

There are more than 460 WinWholesale locations across the U.S. in addition to more than 100 Noland Company branches, mainly in the southeast U.S. Noland Company is a wholly-owned subsidiary of WinWholesale. …

March 10, 2008

Companies

Watsco Same-Store Sales Fall 7.6% in 2007

Watsco, Inc., Coconut Grove, FL, reported sales in 2007 of $1.76 billion, including $121 million from locations acquired or opened in the past 12 months. Revenues on a same-store basis fell 7.6%, reflecting a 5% decline in sales of HVAC equipment (45% of sales).

Watsco had a 10% increase in commercial refrigeration product sales and an 11% decline in other HVAC products.

From an end-market point of view, results include growth in the residential replacement market, growth in the commercial market and a decrease in sales to new housing.

Revenues for the fourth quarter increased 4.8% to $398 million, including $52 million from locations opened or acquired during the last 12 months, versus $380 million during the quarter a year ago. Revenues on a …

February 19, 2008

Companies

WinWholesale Opens Gulf Coast Winnelson

WinWholesale, Dayton, OH, has opened Gulf Coast Winnelson Company in Port Charlotte, FL, to provide plumbing contractors in five counties with a complete line of equipment, parts and accessories.

The counties are from Bradenton south to Marco Island and include Charlotte, Collier, Lee, Manatee and Sarasota. Gulf Coast is the second Winnelson company to open in 2008 in Florida. The other was Tampa Winnelson in January that serves the Tampa Bay area.

There are more than 460 WinWholesale locations across the U.S. in addition to more than 100 Noland Company branches, mainly in the southeast U.S. Noland Company is a wholly-owned subsidiary of WinWholesale.

WinWholesale Inc. is a supplier of domestic and industrial supplies and materials. In the group are companies …

February 6, 2008

Building Materials/Construction

HD Supply: Watsco Deal Falls Through

HD Supply, Orlando, FL, will not move forward with its deal to sell its HVAC business to Watsco, Coconut Grove, FL, HD Supply spokeswoman Erica Crosling confirmed to MDM.

The potential sales of the HVAC business to Watsco was always dependent up on a transaction that was beneficial for our customers and associates, and maximized value for the company,” Crosling said. “After carefully weighing the options and taking these concerns into consideration, we have decided to retain and grow our HVAC business.”

Watsco had signed a letter of intent to buy the HD Supply branches that sell Rheem.

HD Supply’s deal with Pro-Build Holdings to buy its lumber and building materials division will go forward. …

February 3, 2008

Building Materials/Construction

Wolseley Profit Drops 25% in First 5 Months

Global building products and plumbing/HVAC distributor Wolseley plc reported a 25% drop in profit for the five months ended Dec. 31, 2007. Full half-year results will be announced in March. Revenue was up 2%.

The UK-based company was hit hardest in North America, where profit was down 40% and revenue down 10% (5% in constant currency). Year-to-date, 3,000 people have been laid off at Stock Building Supply and Ferguson in the U.S. due to tough conditions in the U.S. Wolseley has implemented a general headcount freeze” for both continents on which it operates.

The company blamed the “worsening U.S. housing market, low consumer confidence arising from global credit restrictions and the weakness of the U.S. dollar.”

The distributor says “market …

January 21, 2008

Facilities Maintenance (MRO)

Windsor Factory Supply to Buy Keep Industrial Supply

Employee-owned Windsor Factory Supply Ltd., Windsor, ON, Canada, have agreed to acquire Keep Industrial Supply Ltd., also based in Ontario.

Keep has locations in Woodstock, Brantford and Stratford, ON. The business will continue to operate as Keep Industrial Supply Ltd.

Windsor Factory Supply is a provider of industrial, construction, plumbing, safety and MRO products in markets throughout Ontario.

Windsor Factory Supply is a logical fit to enhance our reputation of community involvement, quality customer service and excellent product mix”, says Sam Keeping, president of Keep Industrial …

January 18, 2008

Companies

WinWholesale Opens Tampa Winnelson

WinWholesale, Dayton, OH, has opened Tampa Winnelson Company to provide plumbing and mechanical contractors in the Tampa Bay area.

It is the first WinWholesale company in the Tampa Bay area and serves Hillsborough, Pasco, Pinellas and Polk counties.

We look forward to another company opening in the state in the near future as we continue extending our seven industry brands,”said Monte Salsman, WinWholesale COO. The other Winnelson openings since October are in Orlando in central Florida and Vero Beach on the state’s east coast.

The group …

January 14, 2008

Finance

Ingersoll-Rand to Acquire Trane Inc. for $10.1B

Ingersoll-Rand Company Ltd., Hamilton, Bermuda, has agreed to acquire Trane Inc., formerly American Standard Companies Inc., Piscataway, NJ, for $10.1 billion, including the assumption of $150 million of Trane net debt.
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Trane is a manufacturer of indoor climate control systems, services and solutions with expected 2007 revenues of $7.4 billion.
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According to Ingersoll Rand, the acquisition will form a $17 billion global industrial company, which includes an $11 billion Climate Control business. Trane’s commercial and residential climate control business complements Ingersoll Rand’s Hussmann and Thermo King brands.
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The total value was $47.81 per Trane share based on the closing price as of Dec. 14, 2007.
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Trane Inc., previously …

December 17, 2007

Companies

Watsco to Buy HD Supply’s HVAC Assets

HD Supply has signed a letter of intent to sell its Rheem/Ruud HVAC operations to Watsco Inc., Coconut Grove, FL, an HD Supply spokeswoman confirmed. She said&nbsp ; the companies are in the process of due diligence on the deal.
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If it moves forward, the transaction would close in the first quarter of 2008. The assets will become part of Watsco’s Gemaire group in Ft. Lauderdale, FL.
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HD Supply will hold onto its plumbing assets.

The HD Supply Plumbing/HVAC business Web site lists Hughes Supply and Apex Supply Co. as the two companies that made up the division. Former revenue reports do not separate the plumbing from the HVAC sales.

Apex,Atlanta, GA , was …

December 14, 2007

Companies

WinWholesale Opens Plumbing Location in Florida

WinWholesale Inc., Dayton, OH, has opened Orlando Winnelson Co. in Orlando, FL, to serve contractors in a four-county area with plumbing equipment, supplies and accessories. &nbsp ;

The locally owned and operated company includes a warehouse, display area and sales counter serving contractors in new construction, remodeling and replacement work.

WinWholesale has opened 17 locations in its various Win company wholesaling industries and the Noland Company subsidiary in 2007.
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Six of those locations are plumbing operations, including another Florida location in Vero Beach. The rest are in HVAC, electrical, industrial pipes, valves and fittings, and waterworks and utility supplies. …

December 12, 2007

Companies

Plumbing/HVAC Distributor Noland Cuts Jobs

Noland Company, Newport News, VA, has cut 45 jobs across the company over the past month due to the national housing downturn, according to the local paper, the Daily Press.
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Noland, bought by WinWholesale, Dayton, OH, in 2005, sells plumbing and HVAC supplies to construction end-markets. According to the article, Noland’s advantage over rival Ferguson is that it is focused in the Southeast, which is generally doing better than the U.S. average.

Noland has about 1,300 employees, and WinWholesale has …

December 4, 2007

Building Materials/Construction

Wolseley Makes Five Bolt-On Acquisitions

Wolseley plc, the UK-based global distributor of plumbing and heating products to professional contractors and a supplier of building materials, announced five bolt-on acquisitions for an aggregate of 84 million pounds Sterling (US$174 million).
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In a full year, these bolt-on acquisitions are expected to add 109 million pounds (US$226 million) to total revenue.
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Stock Building Supply has purchased three companies in the U.S. (Article)
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HVAC and plumbing distributor Ferguson has acquired J.D.’s Wholesale Plumbing & Supply, Pagosa Springs, CO. J.D.’s had sales of $0.7 million in 2006.
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Wolseley France has acquired Sofiparts SAS, which designs and assembles roof trusses operating from …

November 8, 2007

Finance

Private Equity Firm to Buy HVAC Supplier Goodman for $2.6B

Goodman Global, Inc., Houston, TX, manufacturer of residential and light commercial heating, ventilation and air-conditioning equipment, has agreed to be acquired private equity firm Hellman & Friedman LLC for $2.65 billion in cash.

The transaction will be financed by Barclays Capital, Calyon New York Branch, GE Commercial Finance and vehicles managed by GSO Capital Partners LP and Farallon Capital Management, LLC.

Stockholders holding a majority of Goodman’s outstanding shares have agreed to vote in favor of the transaction.

Goodman Global, Inc. products are predominantly marketed under the Goodman, Amana and Quietflex brand names, and are sold through company-operated and independent distribution networks with more than 800 distribution points …

October 22, 2007

Building Materials/Construction

U.S. Residential Market Slows Wolseley Annual Sales

Global HVAC, plumbing and building materials distributor Wolseley plc reports there are no signs yet of any upturn in the U.S. housing market; it is also seeing the repairs, maintenance and improvement market starting to soften. A weaker dollar and price deflation in lumber and panels has also hurt its North American building materials business.
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In its preliminary results report for the year ended July 31, 2007, Wolseley had sales of 16.2 billion pounds (US$32.7 billion), up 14.6% from the previous year. Operating profit fell slightly.
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North American revenues declined slightly overall, reflecting slow sales by Stock Building Supply hit by the weak U.S. residential market. Ferguson, the plumbing/HVAC business, had 5.5% organic growth. Operating profit in …

September 25, 2007

Companies

Ferguson Makes Two Acquisitions

Ferguson has acquired Western Air Systems & Controls Inc., an exclusive Trane HVAC distributor for the states of California and Nevada with three facilities. In the year ended Dec. 31, 2006, Western Air had revenue of $59.6 million.
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Ferguson has also acquired Davidson Pipe Company Inc., a pipes, valves and fittings distributor in the New York metropolitan market. In the year ended Sept. 30, 2006, Davidson had revenue of $125.8 million.
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Ferguson is a company of Wolseley plc, a global distributor of plumbing and heating products as well as building materials. Wolseley announced five bolt-on acquisitions this month, including one by Stock Building Supply and two in Europe. These acquisitions are expected to add 110 million pounds&nbsp ; to total …

September 11, 2007

Free

Fairmont Supply Company Buys Brite Star Sales

Fairmont Supply Company, Canonsburg, PA, a national full-line distributor of industrial maintenance, repair and operating supplies has announced the acquisition of Brite Stars Sales, Elko, NV.
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Brite Stars Sales, an industrial distributor serving the northern Nevada industrial and mining market, specializes in automotive and filtration products sold primarily to the gold mining customers in Nevada. Brite Star Sales has an additional location in Round Mountain, NV.
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Gary Heit, who started the company in 1984, will join Fairmont Supply as a consultant, developing business opportunities in Nevada.
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This acquisition is consistent with our growth strategy to enter key markets throughout the U.S. Brite Stars Sales is an outstanding organization and is …

September 5, 2007

Companies

Watsco Sales Down 6% in First Half

HVAC distributor Watsco, Inc., Coconut Grove, FL, reported sales decreased 7% to $471 million for the second quarter ended June 30, 2007.
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Revenues in the first six months declined 6% to $842 million. Profit for the first six months was $35.4 million, down from the $41.8 million recorded in the same period a year ago. New branches added $21 million of revenue during the first half of 2007.
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The Watsco network has expanded by 23 locations over the past 12 months, with a working capital investment related to these network expansion activities of $18 million as of June 30, 2007.
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Watsco recently announced it would acquire ACR Group Inc. , which had $240 million in sales in 2006. It has 54 locations in 10 …

July 24, 2007

Free

ACR Group Hit by Residential Slowdown

ACR Group, Inc., Houston, TX, distributor of heating, ventilation and air conditioning equipment and supplies, reported profit dropped more than 50% in the first quarter ended May 31, 2007. Sales were down 4% to $59.5 million.
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ACR, which just agreed to be purchased by HVAC distributor Watsco, said the year-over-year decline in revenue and profitability was attributable to a weakening in key geographies, including Florida and Nevada, with high exposure to residential new construction end-markets. ACR also blamed the slow results on cooler- than-normal weather conditions.
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ACR had more than $240 million in annual sales in …

July 17, 2007

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