Building materials distributor Grafton Group has signed a deal to acquire Isojoen Konehalli Oy and Jokapaikka Oy (IKH) for €199.3 million, a move that will give Grafton a presence in Finland for the first time.
IKH is one of the largest workwear and personal protective equipment, tools, spare parts and accessories technical wholesalers and distributors in Finland. Its distributes products in Finland through a network of independently-operated IKH partner stores, third-party distributors and 10 owned stores located in major cities, and is developing a market presence in Sweden and Estonia through the export of its product ranges to a network of local partner stores.
The deal will see Grafton pay cash on completion, entirely funded from the group’s existing cash resources.
The acquisition is expected to complete next month, and its management team will remain with the business following completion.
The IKH family-owned business was founded in 1956, and has its headquarters in Kauhajoki, along with its distribution and logistics centre.It currently employs around 400 people.
It reported revenue of €158.8 million and an adjusted operating profit of €21.0 million for the year ended February 28th, 2021. It had gross assets of almost €102 million at the end of February, and an adjusted operating profit margin of 13.2 per cent.
Grafton said it expected the acquisition would be earnings enhancing from completion.
"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 Gavin Slark, chief executive of Grafton.
“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.”
