from Breaking news on the Telgraph site
DIY chain may sell for £1.5 billion
The owners of Focus Wickes were said to have begun moves that could lead to a £1.5 billion sale of the UK's second biggest DIY chain.
Reports said private equity houses Duke Street Capital and Apax had asked investment bank Goldman Sachs to explore ways in which they might realise their controlling interest in the 428 store business.
As well as a sale to a rival operator - such as Homebase or American group Home Depot - the Sunday Times said a deal could be struck with another private equity fund.
It may also consider splitting itself in two and retain control of the Focus part of the business.
However, uncertain market conditions mean a flotation is unlikely, particularly after an attempt at a stock market listing failed in 2002.
Analysts have put a £1.5 billion price tag on the business, which was only founded in 1987 and grew substantially through the acquisitions of Do It All, Wickes and Great Mills.
It generated sales of £1.3 billion in the year to October 2003 with operating profits thought to have hit £113 million.
While Focus is aimed at the DIY market, Wickes is used by builders and sells more specialist materials.
In 2002, Duke Street realised part of its majority holding when Apax paid about £120 million for a 29% stake in the business. Many of the remaining shares are held by management, including founder and executive chairman Bill Archole.
Among other options likely to be considered by Goldman Sachs could be a refinancing in a move that would allow shareholders to get some of their money back.
DIY chain may sell for £1.5 billion
The owners of Focus Wickes were said to have begun moves that could lead to a £1.5 billion sale of the UK's second biggest DIY chain.
Reports said private equity houses Duke Street Capital and Apax had asked investment bank Goldman Sachs to explore ways in which they might realise their controlling interest in the 428 store business.
As well as a sale to a rival operator - such as Homebase or American group Home Depot - the Sunday Times said a deal could be struck with another private equity fund.
It may also consider splitting itself in two and retain control of the Focus part of the business.
However, uncertain market conditions mean a flotation is unlikely, particularly after an attempt at a stock market listing failed in 2002.
Analysts have put a £1.5 billion price tag on the business, which was only founded in 1987 and grew substantially through the acquisitions of Do It All, Wickes and Great Mills.
It generated sales of £1.3 billion in the year to October 2003 with operating profits thought to have hit £113 million.
While Focus is aimed at the DIY market, Wickes is used by builders and sells more specialist materials.
In 2002, Duke Street realised part of its majority holding when Apax paid about £120 million for a 29% stake in the business. Many of the remaining shares are held by management, including founder and executive chairman Bill Archole.
Among other options likely to be considered by Goldman Sachs could be a refinancing in a move that would allow shareholders to get some of their money back.
