Acquisition of Leyland SDM

RNS Number : 2045F

Grafton Group PLC

19 February 2018

 

19 February 2018

Grafton Group plc

Acquisition of Leyland SDM for £82.4m

Grafton Group plc ("Grafton" or "the Group"), the merchanting and DIY Group with operations in the UK, Ireland, the Netherlands and Belgium, is pleased to announce that it has acquired the entire issued share capital of LSDM Limited ("Leyland SDM"), London's largest independent specialist decorators' merchant.

The total consideration payable by the Group is £82.4 million on a debt-free, cash-free basis and will be funded from the Group's cash and debt facilities. 

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 operates through a unique portfolio of stores which have been built up over the last 30 years during its period of family ownership.  Its network of 21 convenience-led and predominantly high street stores, are situated in some of London's most prominent locations including King's Road Chelsea, High Street Kensington, Shaftesbury Avenue, Victoria, Clerkenwell, and Notting Hill.  In the last two years, it has further expanded its footprint with four new stores opened in Battersea, Mile End, Clapham High Street and Putney as well as opening a new Distribution Centre at Wembley. 

The Leyland SDM "small box" convenience trading format is a proven business model in Central London that complements the Group's larger Selco branches located in Greater London. 

Leyland SDM's revenue and underlying EBITA was £47.8 million and £7.3 million respectively for the year ended 31 December 2017.  Gross assets are estimated at circa £10.0 million at completion.

Commenting on the agreement, Gavin Slark, Chief Executive Officer of Grafton said today:

"The acquisition of Leyland SDM is a unique opportunity to acquire a leading brand with exceptional locations in Central London and expands our presence in a resilient segment of the merchanting market located at the heart of one of the world's leading cities". 

Ends

For further information please contact: 

Grafton Group plc	[phone]
Gavin Slark	Chief Executive Officer
David Arnold	Chief Financial Officer
MHP Communications	[phone]
James White
Murray	[phone]
Pat Walsh

About Grafton

Grafton Group plc is an international distributor of building materials to trade customers and has leading regional or national positions in the merchanting markets in the UK, Ireland, the Netherlands and Belgium. Grafton is also the market leader in the DIY retailing market in Ireland and is the largest manufacturer of dry mortar in the UK. Grafton trades from circa 670 branches and has circa 13,000 employees. Its portfolio of brands include Selco, Buildbase, Plumbase, MacBlair and CPI EuroMix in the UK; Chadwicks, Heiton Buckley and Woodie's in Ireland; Isero and Gunters en Meuser in the Netherlands and YouBuild and MPRO in Belgium.

For further information visit www.graftonplc.com

 

END

 

 

ACQSFLESAFASELE