Gavin Slark, CEO, Grafton
Builders’ merchant and DIY company Grafton today announced that it has signed a deal to acquire Netherlands-based Isero for €91.5m.
Isero is a specialist distributor of tools and fixings in the Netherlands, which trades from 38 branches under the Gerritse, Breur Ceintuurbaan and Van der Winkel brands.
The purchase consideration of €91.5 million, including the refinancing of assumed debt, is payable in cash on completion.
Isero generated revenue of €94m and reported adjusted EBITDA of €10m and adjusted operating profit of €8.8 million for the year to June 30th 2015.
The acquisition is subject to consultation with the Works Council, a customary condition of completing a transaction of this nature in the Netherlands, and is expected to complete before the year-end.
Gavin Slark, CEO, Grafton, said: “The acquisition of Isero will give Grafton a presence in the Netherlands for the first time and strengthen its branch footprint in the mainland European market. Isero is being acquired at an early stage in the recovery of the Netherlands economy and there are excellent opportunities for the organic and acquisitive expansion of the business. Isero’s business model supports Grafton’s core values. It has a strong management team and customer centric culture with a focus on value added services and high stock availability. Isero’s small store format will broaden the Group’s merchanting capabilities and we are excited at the prospect of working with the Isero team.”