Agreement to Acquire Belgian Merchanting Business

RNS Number : 9684Q

Grafton Group PLC

21 October 2013

 



Grafton Group plc

Agreement to Acquire Belgian Merchanting Business for €20.5 million

Grafton Group plc ("Grafton" or the "Group"), the builders merchanting and DIY Group with operations in the UK, Ireland and Belgium, is pleased to announce that it has reached agreement through a wholly owned subsidiary to acquire Binje Ackermans SA, a six branch builders merchanting business based in Brussels and trading under the MPRO brand. The transaction is expected to close in the first quarter of 2014 subject to obtaining approval from the Belgium Competition Authority. Binje Ackermans SA is a wholly-owned subsidiary of Saint- Gobain.

MPRO reported revenue of €50 million (£40.5 million) in the financial year to 31 December 2012. The total consideration payable, which will be satisfied in cash, is €20.5 million (£17.4 million) on a debt and cash free basis and is subject to the agreement of assets and liabilities at the date of completion.   The value of the gross assets at 31 December 2012 was €20.8m (£17.0 million).

MPRO reported a loss of €2.2 million (£1.8 million) for the year to 31 December 2012 which included a charge for amortisation of intangibles and restructuring costs.  The acquired business is forecast to operate at breakeven for the year to 31 December 2013.

Commenting on the proposed transaction, Gavin Slark, Chief Executive Officer of Grafton Group plc said:

"This transaction presents a unique strategic opportunity for Grafton to acquire a business with a leading position in the Brussels market.  MPRO's branches are an excellent geographic fit with the Group's existing branches which are located in the west of Belgium.  The proposed acquisition creates opportunities for scale related benefits and operational synergies in the areas of procurement, central services and the sharing of best practice while also providing a solid base for future growth in the Belgian merchanting market."

Ends

 For further information please contact:

Grafton Group plc                  [phone]

Gavin Slark                               Chief Executive Officer

David Arnold                           Chief Financial Officer

Murray Consultants               [phone]

Joe Murray

Pat Walsh

MHP Communications           [phone] 

Andrew Jaques

John Olsen

Notes to Editors

Grafton Group plc is the third largest builders merchant in the UK, trading under the Buildbase and Selco brands and is among the top four plumbers merchanting businesses trading under the Plumbase brand.  In Ireland, Grafton is the largest builders merchant and DIY retailer.  In Belgium, the Group holds a 65 per cent shareholding in YouBuild which trades from 11 branches situated in the west of Belgium.  YouBuild reported revenue of €34.4 million (£29.3 million) for the six months to June 2013.

On 16 October 2013, Grafton Group plc became solely traded on the London Stock Exchange following a change in its listing arrangements.

 

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