As part of its strategy of investing in building systems which strengthen its routes to market, BPB announces that it has reached agreement to acquire the business and assets of the Rawlplug Group, a brand leader of specialist fixing systems for the construction industry. The total consideration, on an enterprise value basis, is £27.0 million in cash.

BPB is acquiring the Rawlplug business in the UK together with associated distribution businesses in Ireland and France. Operating from a plant in Glasgow, the group is a leading manufacturer of anchoring and fixing systems used in the building trade, retail DIY and industrial markets. It employs more than 250 people and in the year to 31 December 2000 achieved sales of £31 million.

The Rawlplug business will integrate well with BPB’s successful Artex-Blue Hawk decorative products and distribution business in the UK which achieved sales of £35 million in the year to 31 March 2000. Rawlplug will also strengthen BPB’s offering of internal lining systems into builders’ merchants in key western European markets and provide the opportunity to establish Rawl as a global brand for wall, ceiling and floor fixings.

Commenting on the deal, BPB’s chief executive, Richard Cousins, said:

“The acquisition of Rawlplug demonstrates BPB’s commitment to invest in fast-track lightweight building systems which complement existing distribution networks and strengthen our leadership positions in growth markets.”

• BPB is a world leader in the supply of plasterboard, plasters, insulation, ceiling tiles and related products for internal linings, serving growing markets for building systems in over 50 countries.
  
• Completion of the Rawlplug transaction, which is subject to normal closing conditions, is planned for early February 2001.

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