Grafton Group aquires Isero for €91.5m

Irish merchanting and DIY group Grafton said on Tuesday that it has agreed to acquire Dutch tool distributor Isero for €91.5 million. The acquisition is the group's largest to date in continental Europe.

Isero is a specialist distributor of tools and fixings in the Netherlands, and trades from 38 branches under the Gerritse, Breur Ceintuurbaan and Van der Winkel brands.

Grafton Group will pay H2 Equity Partners, the majority shareholder in Isero, private individuals and management who have a small shareholding in the company, a consideration of € 91.5 mn, including the refinancing of assumed debt.

Isero reported revenue of € 94 mn and reported adjusted earnings (EBITDA) of € 10 mn and adjusted operating profit of € 8.8 mn for the year to June 30th 2015.

Gavin Slark, chief executive officer of Grafton said the deal 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,” he said, adding that 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.

In a note, Davy Stockbrokers said that the acquisition is a “welcome use of Grafton’s resources and should enhance the group’s offering”.