Grafton builds Dutch merchant network with €91.5m deal
Builders' merchants Grafton Group has agreed to acquire Dutch specialist tool distributor Isero BV in a deal worth €91.5m.
Isero, which trades from 38 branches under the Gerritse, Breur Ceintuurbaan and Van der Winkel brands, is being acquired from its majority shareholder H2 Equity Partners, a group of private individuals and management who have a small shareholding.
The consideration of €91.5m includes refinancing of assumed debt and is payable in cash on completion.
Isero generated revenue of €94m and reported adjusted earnings of €10m and adjusted operating profit of €8.8m for the year to June 20, 2015.
The acquisition is subject to consultation with the company Works Council, a customary condition of completing a transaction of this nature in the Netherlands, and is expected to complete before year-end.
Speaking about the transaction chief executive officer of Grafton Group, Gavin Slark, inset, said that there Isero is being acquired at an early stage and that there are significant opportunities for the company. "The acquisition of Isero will give Grafton a presence in the Netherlands for the first time and strengthen its branch footprint in the mainland European market.
"Isero is being acquired at an early stage in the recovery of the Netherlands economy and there are excellent opportunities for the organic and acquisitive expansion of the business. Isero's business model supports Grafton's core values," Mr Slark said.
Shares in London listed Grafton Group closed up 1pc at 659.50pence each following the news.