Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
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.
One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It's a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .