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Grafton to acquire Polvo
Posted on Thursday, 11 April 2019 12:54
Grafton Group is hammering a deal to buy Netherlands-based hardware merchant wholesale company Polvo from Pallieter Group for EUR 131.00 million on a debt-and cash- free basis.
Subject to consultation with the Polvo Works Councils and approval by the Dutch Competition Authority, the transaction is slated to complete before the end of June 2019.
The deal will extend Grafton’s presence in the southern, western and eastern regions of the Netherlands and strengthen its standing in the country’s specialist tools, fixings and ironmongery distribution market.
Furthermore, the purchase is expected to expand the buyer’s product range and increase its customer base.
Headquartered in Zevenbergen, Polvo operates 12 hardware stores, including Leys, Van Der Stad and Kruyt, across 49 branches throughout the Netherlands.
It mainly focuses on five specialisms namely, access systems and control, ventilation technology, carpentry support and personal cleaning.
Polvo’s products include faucets, cavity anchors, padlocks and hinges and the group booked revenue of EUR 127.30 million for the financial year ended 31st December 2018.
Upon closing, the target will continue to operate as an independent company.
Established in 1902, Grafton distributes building materials for the merchanting and retailing markets across the UK, Ireland, the Netherlands and Belgium.
Its brands include Selco, Buildbase and Euromix, the latter of which is billed as the largest manufacturer of silo-based mortar, trading in England, Scotland and Dublin.
For the fiscal year ended 31st December 2018, the purchaser booked revenue of GBP 2.95 billion, a 9.0 per cent increase on GBP 2.72 billion in the preceding 12 months.
There have been 61 deals targeting hardware merchant wholesaler companies announced worldwide since the beginning of 2018, according to Zephyr, the M&A database published by Bureau van Dijk.
In the largest of these, and one of two Taiwan-based targets to feature in the top ten, unknown investors injected TWD 11.76 billion (USD 380.95 million) into Brighton-Best International in September last year.
© Zephus Ltd