Timber and building supplies distributor Travis Perkins has acquired 30% of Toolstation Ltd as it moves to enhance its multi-channel strategy.
It will see Toolstation take advantage of Travis Perkins’ global resource network and buying power, with Travis Perkins buying into Toolstation’s ecommerce and fulfilment system.
This has seen Travis Perkins enter a software and support agreement with Owtanet, the IT solutions provider that supplies Toolstation’s online trading system, to allow its existing merchant and retail lines to be sold through the system.
Toolstation is a direct retailer of tools and building supplies, including wood screws, sealants and accessories for timber windows and doors, and recorded turnover of £21.4m in 2007.
Travis Perkins paid an initial £5m for a 30% share in the firm, and has the option to buy out the rest of the company in four years time. This will be undertaken through an earn-out formula. It will also offer Toolstation a loan facility of up to £30m over the next four years, which will be subject to performance conditions against the company’s business plan.
“Our customers increasingly expect products from us through a variety of distribution channels, delivered to them or collected by them via a time, place and mechanism that suits their needs,” said Geoff Cooper, Travis Perkins chief executive officer.
“The experienced Toolstation team have already developed one successful business in this market and we are delighted to be working with them with the aim of creating the market leader using their skills and our scale and resources.”
Mark Goddard-Watts, founder of Toolstation, said that the company had been looking for a strategic partner to continue the company’s growth.
“With Travis Perkins’ support, we look forward to continuing to deliver great value products to an increasing number of customers across the UK,” he said.
