Wolseley sells Bathstore

Following two years of speculation, Building materials giant Wolseley has now sold its retail business Bathstore to a newly-incorporated company backed by Endless LLP, for £15million.

The amount is payable over the next five years, and as part of the transaction Endless LLP has invested £11million of new capital in the business to fund its development.

In the nine months to April 30, 2012, Bathstore had revenue of £66million and had associated assets of £7million at January 31, 2012.

Chief executive of Wolseley, Ian Meakins commented: “The disposal is in line with our strategy of focusing on our core operations. I would like to thank the staff of Bathstore for their commitment to the business and wish them every success for the future.”

In 2010 Wolseley announced its intention to improve or sell 19 core businesses, and although non were mentioned many experts believed Bathstore to be one.

Since that time, many names have been connected to a possible acquisition of the company.

These have included private equity firm Electra, through to trade buyers including the former management team from Marks & Spencer, the former owner of Dolphin Bathrooms Sun Capital Partners, and even its founder Patrick Riley who owns Bathroom Brands.

Bathstore started in Croydon as Simply Bathrooms and sold to Wolseley in 2003 for an undisclosed sum. It built the chain from 33 stores to more than 160.

Bathstore recorded a turnover of £104million and pre-tax profits of £4.5million in the year to July 31, 2009.

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Bathroom Brands step out of shadows

Left to right: David Hance, Roger Cooper, Dawn Crichard,
Karen La Cornue, Patrick Riley and  Clive Chaplin

At the opening of its Jersey HQ, parent company of Crosswater Group and European Bathrooms, Bathroom Brands claimed to be third biggest player for bathroom and shower sales. And it now intends to raise trade and consumer awareness, with plans to float the company on the stock exchange, within the next three years.

The company has recruited ex-Ideal Standard vice president for Western Europe, Roger Cooper as a non-executive director. Cooper commented: “Bathroom Brands is one of the largest bathroom companies but very few know the name. Becoming involved as Bathroom Brands comes of age and begins to build its consumer and trade awareness is exciting – the opportunities for this business are tremendous.”

Cooper joins the Bathroom Brands board of chairman Clive Chaplin, CEO Patrick Riley and Tim Powell, alongside financial director Dawn Crichard.

The group was formed in 2011 by Patrick Riley, former owner of Bathstore, and supplies bathroom products for retailers, distributors and manufacturers. In the past eight years it has delivered 25-30% growth year-on-year, in a challenging economic climate, which it attributes to delivering reliable, low cost product on time and in full.

Forming part of the Bathroom Brands group, the Crosswater Group is headed by chair David Hance and includes the brands Crosswater, Simpsons and Bauhaus. European bathroom, headed by Patrick Riley, includes: Britton Bathrooms, contemporary -styled suites; Burlington Bathrooms, traditional suites, Clearwater baths and Zamori shower trays. European Bathroom Group is also set to launch a recyclable bath to market called ClearGreen and Aquacabinets later in the year.

Patrick Riley, CEO for Bathroom Brands explained, “We have built a modern business capable of extraordinary growth.  Bathroom Brands is successful because of an instinctive empathy for all the social, political and commercial cultures.  Bathroom Brands identifies gaps, creates new markets, improves existing norms and delivers all this on time, on budget and in one piece. Roger’s appointment strengthens a compelling team as he brings with him over 40 years of the best of bathroom business.”

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