Acquisition

Grafton Group PLC
12 June 2001



                 FOUR ACQUISITIONS ADD TWELVE U.K. LOCATIONS



Grafton Group announces the acquisition of four builders merchants which will
add a further 12 trading locations to its U.K. operations. The businesses were
acquired over recent months and have a combined turnover of Stg£39.6 million.
These acquisitions bring Grafton's outlets in the U.K. to over 170.


In June, the Group acquired the G.A.Day Group, a long established builders
merchant, based in Portsmouth which trades from 7 locations in the South of
England and Wales. In the year ended 28th February 2001 the Day Group recorded
a turnover of Stg£25.6m.


In May the Group acquired BSG Builders Merchants Limited, a heavyside builders
merchant, trading from three sites in East London and Essex. Sales in the year
to September 2000 were Stg£9.3m.


Also in May the Group acquired Norman Rhead (Longton) Limited, a heavyside
builders merchant trading from one site in Stoke-on-Trent. In the year to
December 2000 the company recorded a turnover of Stg£3.3m.


In February the Group acquired the trade and net assets of Hawkesford Limited
in Market Drayton, Shropshire, with annualised sales of Stg£1.4m.


The combined net assets acquired are expected to amount to c. Stg£17.2m with
goodwill amounting to c. Stg£4.6m.


Commenting on the announcement today, Michael Chadwick, Executive Chairman,
said: 'We will continue to acquire suitable businesses which add value to our
operations in the U.K. Our acquisitions to date have given us a

scale and momentum which makes the Group a major force in this substantial
market. These latest acquisitions confirm Grafton's commitment to continuing
participation in the ongoing consolidation of the U.K. builders merchanting
market.'


Grafton Group's U.K. turnover in 2000 amounted to STG£340 million.


Ends     12 June 2001

For reference:

Michael Chadwick

Executive Chairman

Grafton Group plc

Telephone: (++353) [phone]

Joe Murray

Murray Consultants

Telephone: (++353) [phone]

Ginny Pulbrook

Citigate Dewe Rogerson

Telephone: (++44) [phone]


     This statement is also available on our web site www.graftonplc.com