Grafton spends £82.4m on London-based decorators' merchant
Builders merchanting group Grafton has acquired London-based decorators' merchant business Leyland SDM.
Grafton, which owns the Woodies DIY chain in Ireland, as well as merchanting businesses that operate as Chadwicks and Heiton Buckley, spent £82.4m (€93m) on the acquisition.
Grafton will fund the transaction from its cash and debt facilities.
Last year revenue and earnings before interest and tax at Leyland SDM were £47.8m and £7.3m respectively. Gross assets are estimated at circa £10m at completion of the deal.
Describing the acquisition as a "unique opportunity to acquire a leading brand with exceptional locations," Gavin Slark, chief executive officer of Grafton, said that the acquisition expanded Grafton’s presence in a resilient segment of the merchanting market located at the heart of one of the world's leading cities.
In a statement today Grafton said that Leyland SDM is regarded as one of the most recognisable and trusted decorating and DIY brands in central London, selling paint, tools, ironmongery and accessories.
"It prides itself on high levels of customer service, maintaining long standing relationships and carrying a strong reputation with both trade professionals and DIY customers."
Leyland SDM, which was until now family-owned, has a total of 21 convenience-led and predominantly high street stores, situated in some of London's most prominent locations including King's Road Chelsea, High Street Kensington, Shaftesbury Avenue, Victoria, and Notting Hill.
Last year Grafton reported revenue of £2.7bn (€3.03bn) in constant currency rates, a 6.8pc increase year-on-year.
Grafton said that both its merchanting and retail arms in Ireland experienced a lift from an economic recovery that will continue this year.
The company’s UK market generates the majority of its revenue and profits.