Focus Wickes, the DIY chain, generated more takeover interest today after reports linked plumbing and heating specialist Wolseley to part of the group.
Wolseley, the owner of the Plumb Center, Hire Center and Parts Center (Wash Vac), is thought to be interested in Wickes, which is used by builders and sells specialist materials.
Today’s reports follow speculation linking builders merchant Travis Perkins to a bid for Wickes.
The potential interest in Focus Wickes has been stirred by a strategic review believed to be under way by private equity owners Duke Street and Apax.
Other companies interested in Wickes and its 172 outlets are believed to include European building distributor St Gobain, which owns Jewson.
A sale of Wickes could fetch as much as £900 million, while earlier last month analysts valued the whole group at around £1.5 billion.
The business 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 around £113 million.
As part of the strategic review, Duke Street and Apax could consider splitting itself in two and retaining the Focus part of the operation. It is thought a stock market flotation is an unlikely option.
Both Travis Perkins and Wolseley have the firepower to take on Wickes, with annual sales at the latter’s UK operation recently breaking the £2 billion barrier for the first time. It also has extensive overseas businesses.
Travis currently has 740 outlets and is known to be keen to expand through acquisitions.