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Last Updated: Friday, 1 October, 2004, 13:11 GMT 14:11 UK
Centrica snaps up Dyno-Rod group
Dyno-Rod van
Centrica is grabbing a slice of the emergency call-out market
British Gas owner Centrica has bought drain maintenance firm Dyno-Rod and its other businesses for 57.6m ($104.3m).

The deal will see the firm, which has 1.2 million customers on plumbing and drain contract schemes, grab a slice of the emergency call-out market.

The south London-based Dyno-Rod group has a network of drains, plumbing and lock franchises in the UK and Ireland.

The purchase comes after the group said in July it hoped to make a stock market debut, valuing Dyno-Rod at about 60m.

"Dyno-Rod is a well-established and trusted brand which complements British Gas as a leading service provider in an on-demand plumbing and drains market-place worth in excess of 500m per year," said Mark Clare, managing director of British Gas.

Founder's fortune

Dyno-Rod employs 131 full-time staff at its Surbiton office, and already has 12 staff at British Gas' Stockport office through an existing deal.

The firm's franchises are expected to generate a turnover of about 60m in 2004. This would lead to a turnover of 13m for the central Dyno-Rod firm, with profit before tax expected to reach 6m.

The sale is set to net Dyno-Rod's American founder Jim Zockoll around 49m.

The former Pan Am pilot set up the firm in 1963 at a time when UK plumbers were unfamiliar with the concept of using high pressure water hoses to clear blocked drains.


SEE ALSO:
Drains firm aims for market float
13 Jul 04  |  Business


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