Insider Media Limited

Travis Perkins has acquired the remaining 70 per cent share capital of Toolstation for a further £24m. The Northampton builders' merchant, which now owns all 103 Toolstation outlets, said it expected the deal to generate "excellent returns".

Travis Perkins bought an initial 30 per cent interest in the building products retailer in April 2008, when it comprised 12 stores. Having paid £18m for its first share, the company completed the buyout of the company for a total £42m.

The share capital was bought from founder Mark Goddard-Watts and his family trusts.

Toolstation sells lightside building material products through its network of retail outlets, catalogue operation and online.

The company currently has gross assets of £34m and generated EBITDA of £5m in the financial year to 31 December 2011.

Having paid out a further £24m for the remaining share, Travis Perkins has agreed to make further payments which are dependent upon future performance and expansion of the business over the period to December 2013.

The acquisition will expand Travis Perkins' consumer division, currently comprising home improvement retailer Wickes and Tile Giant, a ceramic tile merchant chain.

Geoff Cooper, 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.

"Toolstation is a great addition to our consumer division and will add to our growth in market share and returns. 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 current management team at Toolstation will all remain in place following the acquisition, confirmed Travis Perkins.