Grafton buys Dutch company for €131m
GRAFTON Group has acquired Dutch business Polvo for €131m on a debt-free and cash-free basis.
Polvo is one of the top three businesses in the specialist ironmongery, tools and ventilation systems market in the Netherlands. It operates from 51 branches.
Polvo reported revenue of €127.3m and adjusted operating profit of €10.6m last year, while it had gross assets of €64m at the end of 2018.
The purchase will be funded from Grafton's cash resources and loan facilities.
This acquisition increases Grafton's presence in the Netherlands, where it already owns the Isero tools store business. The combined businesses will have revenues in excess of €300m and will trade from 113 branches.
"This acquisition will complement our existing Isero business, increase our exposure to the attractive, fast growing Dutch market and support our strategy of creating a more balanced portfolio of businesses internationally," said Gavin Slark, CEO of Grafton. "Polvo is a long-established high-quality business and brand that gives Grafton a unique opportunity to materially increase its scale and consolidate its market leadership position in the Netherlands."
In Ireland Grafton owns the Woodies DIY chain as well as builders merchanting outlets Chadwicks and Heiton Buckley.