Focus DIY up for sale?

[The Clown of Pevensey Bay]

FOCUS DIY CONFIRMS PRIVATE EQUITY TALKS
By Russell Lynch, PA City Staff
Retailer Focus DIY today confirmed talks with US private equity firm Cerberus
over a potential sale of the struggling business.
The debt-laden firm, which is UK's third biggest home improvement chain behind
B&Q and Homebase, said it hoped to finalise negotiations with Cerberus in the
"near future".
The company has experienced tough trading conditions in the DIY market over the
past two years.
According to its accounts for the year to October 2006, the firm owed #180
million to its senior debt holders, including ING and HBOS, as well as #100
million to mezzanine bond holders such as Goldman Sachs.
But the Crewe-based company warned that Cerberus would offer just 40p in the
pound for the bonds.
Focus called in investment bank NM Rothschild to carry out a strategic review
of the group in January in a bid to shed itself of its heavy debt burden.
The move to sell the business came after Focus saw profits slip to #42.7
million in the year to October 2006, with sales dropping by about 5% to over
#700 million.
The firm, which is owned by private equity firms Duke Street Capital and Apax.
was founded in 1987 by chairman Bill Archer. It now has more than 7,000 staff
and 256 stores across the UK.
It grew through acquisitions including Do It All in 1998, and Great Mills and
Wickes in 2000, before selling Wickes to Travis Perkins in 2005 to focus on
consumer DIY.
end

141528 JUN 07

 

[Eddie the Seagull]

I'll give 'em £57.25 for it.

 

[Seagull73]

I'll give 'em £57.25 for it.

You're paying over the odds. The going rate is £56.25..

 

[The Clown of Pevensey Bay]

It's been sold for a pound!

DIY CHAIN SOLD FOR #1
By Russell Lynch, PA City Staff
Retailer Focus DIY was sold for #1 today to private equity firm Cerberus.
Cerberus will pay off the company's #174 million debts and pay #40 million -
40p in the #1 - to bondholders of the Crewe-based company, which is the UK's
third-largest DIY business.
The new owner will bring in former Wickes directors Bill Grimsey and Bill
Hoskins as chief executive and finance director to help revive the business.
The deal comes after Focus struggled in a tough DIY market and appointed
investment bank NM Rothschild to review the business in January.
Focus has more than 7,000 staff and 256 stores across the UK.
The move to sell the business comes after Focus saw profits slip to #42.7
million in the year to October 2006, with sales dropping by about 5% to more
than #700 million.
The company said today it saw "early signs of improvement" in the DIY market
with growing margins and like-for-like sales up 2.8% for the six months to
April, against sales declines in the two previous years.
But it added that the uncertainty over the group's position had hampered its
store opening programme and limited its ability to invest in the business.
Mr Grimsey, who will take over from Steve Johnson as chief executive when the
deal is completed next month, said: "Focus has the potential to be one of the
most successful operators in the DIY sector.
"With the resources and commitment of Cerberus, we will have the opportunity
to exploit its potential in a fundamentally attractive DIY market."
Focus, which was owned by private equity firms Duke Street Capital and Apax.
was originally founded in 1987 by chairman Bill Archer.
It grew through acquisitions, including Do It All in 1998 and Great Mills and
Wickes in 2000, before selling Wickes to Travis Perkins in 2005 to focus on
consumer DIY.
mfl

180914 JUN 07

 

[Barrel of Fun]

I notice Archer sold a lot of his shares a long time ago. A rat jumping ship.

 

[glasfryn]

the words piss-up,could'nt,run,brewery,a,in,a, spring to mind .................but always manage to come out with a wad...........................bastards.

 

[Beach Hut]

the words piss-up,could'nt,run,brewery,a,in,a, spring to mind .................but always manage to come out with a wad...........................bastards.

Sadly he is also a shrewd business man

 

[beorhthelm]

i like to think my (and others) boycott of fuckoff diy has helped its demise, and denied archer of the profits he could have made. but no doubt he only had relativly few shares at the end.

 

[The-Libertine]

Can I now call a halt to my 12-year boycott

Is it officially safe for me to shop there now?

 

[The Clown of Pevensey Bay]

Well, Archer still had an 11.5% stake, which he's now sold for 40p in the pound. However, he had previously leveraged fuckloads of capital out of the business before it was taken over (hmm, anyone spot a pattern?)

So if your only concern is not wanting to make Archer richer -- yes you can shop at Focus.

I won't be, though. It just doesn't feel right, does it?