Grafton Group (LON: GFTU) announced on Tuesday that it has signed an agreement with Ilkka Alakortes and his family to acquire Isojoen Konehalli Oy and Jokapaikka Oy (IKH), a workwear and personal protective equipment (PPE), tools, spare parts and accessories technical wholesalers.
Building materials distributor and DIY retailer Grafton will acquire the Finland based firm for €199.3 million. The total amount will be paid in cash and funded from Grafton's existing cash resources.
IKH, a family-owned business founded in 1956, reported revenue of €158.8 million and an adjusted operating profit of €21.0 million for the year ended 28 February 2021.
“IKH's attractive positioning in core and adjacent segments of the technical trades distribution market in Finland has provided the business with sound fundamentals driven by resilient end-customer demand,” said Grafton.
Gavin Slark, CEO of Grafton, said: “The acquisition of IKH is an exciting development that gives Grafton a presence in Finland for the first time and broadens its market position. It will also strengthen the Group's operations in the mainland European market in line with our international development strategy.
“IKH is a high-quality business with a strong market position and an experienced management team that provides Grafton with a new growth platform in the Nordic Region.”
Grafton's share price is trading 3.38% above Monday's close at 1163p following the news.
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