Ferguson agrees to buy Chicago-based Columbia Pipe

Ferguson announced on Wednesday that it has signed a purchase agreement to acquire Columbia Pipe & Supply Company.

The FTSE 100 company described Columbia Pipe as an independent distributor based in Chicago, Illinois specializing in PVF, commercial mechanical, commercial plumbing, industrial, valve automation, engineered products, and hydronics.

It said business was established in 1935, and employs around 375 associates, with 16 locations across the states of Illinois, Wisconsin, Minnesota, Michigan, and Indiana.

In the year ended 31 December, Columbia Pipe generated revenue of $220m (£169.82m).

“Chicago is the third largest city in the US with a substantial commercial market,” said Ferguson group chief executive Kevin Murphy.

“Columbia Pipe has a strong reputation and well-established vendor and customer relationships in this important region.

“This acquisition accelerates our Chicago market strategy and will allow us to rapidly expand our existing capabilities across the midwest.”

Ferguson said the transaction remained subject to regulatory approval from the relevant competition authorities, which was expected in the current quarter.

At 1431 GMT, shares in Ferguson were up 0.56% at 7,556p.