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Grafton buys Belgian firm for E9.5m

Thursday, November 01 15:17:43

Irish DIY and builders merchants, Grafton, today said it has bought Belgium's Holvoet - a builders merchanting business based in Avelgem - for a total of E9.5m.

The purchase was made through Grafton's Belgian joint venture merchanting business.

Holvoet turned over E16.6 million in its last financial year and the profit before tax attributable to the acquired business was E1.2 million.

Subject to the finalisation of completion accounts, the total purchase consideration, to be satisfied in cash, is estimated at circa E9.5 million net of cash assumed at closing. The value of the gross assets was E7.4 million.

As a consequence of the acquisition, the Grafton shareholding in the Joint Venture has increased to 65.3pc, the Irish group said.

"The acquisition of Holvoet strengthens the position of the Joint Venture in the Belgium merchanting market, provides a good platform for further growth and increases its exposure to the residential repair, maintenance and improvement (RMI) and new build markets. The acquisition increases the annualised turnover of the Joint Venture to circa E75 million and the number of Belgian branches to 11," said Grafton.