- DIY Group Grafton Group conditionally agreed to acquire Polvo from the privately owned Pallieter Group for €131m on a debt and cash free basis.

Polvo, one of the top three leading businesses in the specialist ironmongery, tools, ventilation systems, fixings and related products market in the Netherlands, trades from 51 branches and is an excellent geographic fit with the group's Isero branch network, the company said.

'This acquisition will complement our existing Isero business, increase our exposure to the attractive, fast growing Dutch market and support our strategy of creating a more balanced portfolio of businesses internationally,' said Gavin Slark, Chief Executive Officer of Grafton.

The combined business would have revenues in excess of €300m and trade from 113 branches. Grafton would have a market leadership position in the Netherlands specialist tools, fixings and ironmongery distribution market, the company said.

Polvo reported revenue of €127.3m and adjusted operating profit of €10.6 million for the year ended 31 December 2018. Gross assets were €64m at 31 December 2018.

The acquisition price included €15m for nine freehold properties and would be funded from the group's cash resources and loan facilities.

The transaction was expected to complete before the end of June 2019, subject to 'consultation with the Polvo Works Councils, a condition that is customary for a transaction of this nature, and approval by the Dutch Competition Authority,' the company said.

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