Grafton buys Netherlands-based Isero for EUR91.5m in cash

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

For the year to 30 June 2015, Isero generated revenue of €94m and reported adjusted earnings before interest, taxes, depreciation and amortisation of €10m and adjusted operating profit of €8.8m.

The acquisition, which is expected to complete before the year end, is subject to consultation with the Works Council, a customary condition of completing a transaction of this nature in the Netherlands.

Chief executive Gavin Slark said: “The acquisition of Isero 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. Isero's business model supports Grafton's core values. It has a strong management team and customer centric culture with a focus on value added services and high stock availability.”

At 0819 GMT, Grafton shares were up 1.1% at 665.50p.