Grafton, the Woodies DIY group, has continued its expansion into the British builders' merchants sector with the acquisition of one of its joint venture partners, Deben Builders Merchants.
Grafton is paying £6.1 million sterling (£6.8 million) in cash for the London-based firm, including debt.
Deben, which trades from six branches, reported operating profits of £178,000 on turnover of £10.2 million last year. Grafton said the net assets of the business amounted to around £140,000 and estimated goodwill on the acquisition is £3.5 million.
The acquisition also includes a 50 per cent interest in a joint venture with Grafton which trades from four branches in the London area and has a yearly turnover of around £5 million.
The combined business will result in an additional annualised turnover of around £15 million sterling and increases the company's builders and plumbers merchants' network in the London area to 24 branches.
Grafton has steadily expanded its presence in the British building materials market in recent years and now trades from more than 80 locations in the UK. The purchase of Deben takes its acquisition spending in Britain to £22 million this year and the company plans to continue its expansion strategy.
A Grafton spokesman said the group is "keen to keep growing in London but we are also keen to grow elsewhere in the southeast, from Birmingham southward". The company's British turnover totalled £84 million last year out of a total of £258 million while the total annualised turnover of the British businesses acquired this year is more than £70 million sterling, Grafton said.
