Ferguson Stays Strong in 2022 With Acquisitions, Strong Q2, & NYSE Listing

June 8, 2022

It’s already a big year for Ferguson Enterprises. A look at its second quarter (Q2) shareholders report for the U.S. market shows business grew net sales by 32.6 percent, of which 29.4 percent was organic growth, 1.4 percent from acquisitions, and an extra 1 percent from an additional trading day. Price inflation during Q2 was reportedly in the high teens.

It’s the acquisitions, however, that have generated a lot of buzz in the industry, first with the January announcement that it had acquired RP Lighting + Fans and now with persistent rumors swirling around a possible acquisition of lighting manufacturer Minka Group in the offing. The timing is especially pertinent, given that Lightovation: Dallas International Lighting Show, where Minka Group occupies one of the largest permanent showrooms in the Dallas Market Center’s Trade Mart, is two weeks away.

When asked for comment, Christine Dwyer, Senior Director of Communications & PR for Ferguson, said,  “We cannot discuss pending acquisition activity. If, and when, we have an approved agreement to purchase or close on an acquisition, we would be happy to provide follow-up information at that time.”

The addition of a large, renowned lighting manufacturer to the Ferguson fold would be a significant advantage for the $23B leading North American value-added distributor, which provides expertise, solutions, and products ranging from infrastructure, plumbing, lighting and appliances to HVAC, fire, and fabrication.

Regardless of whether a significant acquisition is imminent, Ferguson is having a spectacular year so far. According to its Q2 report released on March 15, “Residential end markets, which comprise just over half of our U.S. revenue, remained robust during the quarter. New residential housing starts and permits continued to grow, as did residential repair, maintenance and improvement which performed strongly. Overall, Ferguson’s residential revenue grew by approximately 29 percent in the second quarter.”

Similarly, non‐residential end markets experienced strong growth. “Our non‐residential revenue grew by approximately 37 percent in the second quarter, and leading non‐residential economic indicators continue to look strong. Adjusted operating profit of $576 million was 64.6 percent or $226 million ahead of last year.”

Four acquisitions were completed during the quarter including: Safe Step California, an independent dealer licensed to sell and install Safe Step products in California and Nevada; the previously mentioned RP Lighting & Fans; Plumbers Supply Company of St. Louis, a distributor serving residential end markets in the Midwest; and Hot Water Products, Inc., a distributor of commercial water heaters and boilers in Wisconsin and Nebraska.

On May 12, Ferguson celebrated a milestone when it successfully transferred its primary stock listing from the London Stock Exchange (LSE) to the New York Stock Exchange (NYSE).

“We are excited to achieve this key milestone as our listing structure is now fully aligned with our operations and location of our team,” said Kevin Murphy, Ferguson’s CEO.

Added Geoff Drabble, Ferguson Chairman, “With 100 percent  of our operations today in North America, we now have the right listing structure for Ferguson as it continues to grow. On behalf of the Board, I’d like to thank our associates, customers, and investors for their support, and we look forward to the significant opportunities ahead.”  

 

 

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