Travis Perkins (TP) and BSS have confirmed they are in advanced discussions about a merger.
The takeover of BSS for £553m would create the UK’s largest heating and plumbing trade and retail distribution business.
“The board has, for some time, believed that further consolidation in the UK building materials merchanting sector offers significant scale benefits in terms of cost savings and improved operational efficiency to those that proactively participate,” said a TP statement.
“In addition, Travis Perkins believes that the recession has accelerated the long-term trend of customers’ increasing use of different distribution channels to source building materials.
“Against this backdrop, Travis Perkins believes there is a powerful strategic logic which underpins a combination of Travis Perkins’ plumbing and heating activities through its existing distribution and retailing businesses with BSS.”
TP believes the acquisition would create cost efficiencies in purchasing.
TP’s businesses comprise more than 1,000 branches, while BSS has more than 400.
