Founder of Toolstation sells stakefor £24m
Travis Perkins bought 30 per cent of Toolstation in 2008 for £18m, and expanded it to 103 outlets
Mark Goddard-Watts has pocketed £24m after he sold the remainder of the hardware supplier business he founded just eight years ago to Travis Perkins, the owner of the DIY retailer Wickes.
Travis Perkins, which operates the UK's biggest network of builders' merchants, acquired 30 per cent of Toolstation in 2008 for £18m, and since then has expanded it from 12 outlets to 103 today.
The group said yesterday it has now bought the outstanding 70 per cent of shares in Toolstation from Mr Goddard-Watts and his family trust for a further £24m.
There is a further payment dependent on Toolstation's future performance and expansion up until December 2013.
Geoff Cooper, the chief executive of Travis Perkins, said: "Toolstation offers great value and better reliability to customers who want to order and get materials in the way that suits them best – online, via their computer or mobile phone, or by a phone call to our call centre, or at our trade counters."
He added: "Following this acquisition of the outstanding equity, we will look to further exploit Toolstation as part of our service to the trade and to DIY customers."
The Bridgwater, Somerset-based hardware supplier delivered underlying profits of £5m in the year to 31 December. Toolstation is primarily targeted at tradesmen, and operates a catalogue and fast-growing online business.
Mr Goddard-Watts set up Toolstation fours years after his family sold its rival Screwfix to Kingfisher, the owner of B&Q, in 1999. He will remain involved with Toolstation.
Travis Perkins said that Toolstation's new stores move into profit after an average of nine months, adding that "even the oldest branches in the network, at up to 10 years old, have yet to reach sales maturity".
The group believes Toolstation will be a "significant profit contributor".
- 1 Scottish independence: Ireland since 1919 is a lesson for Scotland in what a Yes vote means
- 2 Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
- 3 Lego breaks out of the toy box and heads for the gallery
- 4 Julian Assange and Edward Snowden join piracy mogul Kim Dotcom’s political campaign in New Zealand
- 5 Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
Jihadi John': MI5 may have identified Isis militant who killed David Haines but options limited
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: Police will be on high alert on Friday whatever the result
David Haines beheading: David Cameron says Britain will hunt down Isis 'monsters' shown in video murdering aid worker
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
Salmond accused of laughing off national debt with ‘what are they going to do: invade?’ joke
iJobs Money & Business
£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...
£20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...
£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...