Travis leads £900m race for Wickes
BUILDERS merchant Travis Perkins is emerging as the frontrunner to buy Wickes in a deal which could be finalised by the end of this week.
DIY chain Focus Wickes has decided that it makes sense to split up the group and to sell the Wickes division off separately. It is expected to fetch around £900m.
Adviser Goldman Sachs believes that a break-up would create most value, as Wickes stores are focused on the 'heavy' end of the sector and tend to sell lots of paint and materials to small builders. The Focus stores are aimed at Do-It-Yourself enthusiasts and are similar to Homebase and B&Q.
Wolseley, Travis and a raft of private equity firms have expressed an interest in Wickes, but sources say Travis Perkins is tipped to clinch the deal.
The sale would net a big payout for Focus chairman Bill Archer who owns 12% of the group. Venture capitalists Duke Street and Apax own 70%.
Archer is likely to sell off Focus at a later date, but may first try to improve profitability. It is ironic that the two brands are being split. Archer, as boss of Focus Do It All, fought a long and bitter battle to buy Wickes, eventually securing control in 2000 for £325m.
The purchase of Wickes' 172 superstores would be a transforming deal for Travis Perkins which snapped up 101 Keyline Builders Merchants stores in 1999 and the City Plumbing Supplies chain in 2002.
