Grafton Group PLC (LON:GFTU) has agreed to buy family owned Isojoen Konehalli Oy and Jokapaikka Oy (IKH), one of the largest workwear and personal protective equipment (PPE), tools, spare parts and accessories wholesalers and distributors in Finland, for €199.3mln (£171mln) in cash.
Grafton, a building materials distributor and DIY retailer, will fund acquisition from existing cash resources.
The acquisition is expected to complete next month.
"The acquisition of IKH is an exciting development that gives Grafton a presence in Finland for the first time and broadens its market position,” said Grafton chief executive Gavin Slark. “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,” he said.
IKH is currently developing a market presence in Sweden and Estonia through the export of its product ranges to a network of local partner stores.
IKH reported revenue of €158.8mln and an adjusted operating profit of €21.0mln for the year to end February 2021.
The acquisition will be earnings enhancing from completion, said Grafton.
IKH has around 400 employees and is headquartered in Kauhajoki, where its distribution and logistics centre is located. The current management team will remain with the business following completion.