Builders' Merchants News

Will the rooster be lured by TP?

TP/Galiform merger rumours continue

Published:  07 October, 2009

LONDON: City traders attribute Galiform's 4.05p share price rise to 77.3p this morning to renewed speculation of an imminent takeover.

Galiform, better known as the Howdens joinery group, is now valued at just over £400m. It issued an upbeat trading statement in July, reporting better than expected margins and debt reduction.

Analysts believe Galiform and Travis Perkins would fit well together. The merger talk also boosted Travis Perkins, up 12.5p to 823.5p, today.

Although speculation about a merger has been doing the rounds for some time, it has been growing stronger in recent days.

Galiform Plc came into existence in October 2006, when MFI Furniture Group sold its retail business and subsequently changed its name.

The group’s Howden Joinery  supplies over 400 000 kitchens each year to UK homes. A British business, it prides itself "on a sense of local community, traditional values and long-established relationships that thrive" in each of its 450 trade depots.