Irish builders and plumbers merchant group Grafton Group plc has signed an agreement to acquire Isero BV (“Isero”), the leading specialist distributor of tools and fixings in the Netherlands.
Isero trades from 38 branches under the Gerritse, Breur Ceintuurbaan and Van der Winkel brands. It is being acquired from H2 Equity Partners, the majority shareholder, private individuals and management who have a small shareholding.
The purchase consideration of €91.5 million, including the refinancing of assumed debt, is payable in cash on completion. Isero generated revenue of €94 million and reported adjusted EBITDA of €10.0 million and adjusted operating profit of €8.8 million for the year to 30 June 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, Chief Executive Officer of 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.”