Upbeat Grafton buys Kent merchant
1 September 2014Grafton Group has bought a regional builders merchant in Kent in a bid to increase its coverage in the south-east of England.
The acquisition of Direct Builders Merchants was completed today after the Irish owned group, which includes Buildbase, posted a huge increase in volumes from its UK merchanting business boosted by the upswing in the RMI market.
Direct Builders Merchants is a general merchanting business trading from three branches in Sittingbourne, Whitstable and Ashford in Kent.
"This bolt-on acquisition, which had revenue of £4.8m in the financial year to 31 December 2013, improves the group's coverage of the merchanting market in Kent and the south-east of England," a spokesperson said.
Last week Grafton reported huge gains in sales and profits. In the first six months revenue was up 11% to £1.02bn and underlying operating profits up 62% to £50.6m from £31.2m a year ago. Underlying profits before tax were up 88% to £45.9m from £24.5m.
"These results demonstrate further progress by the group, in particular, the milestone of a 5% group operating margin, which is a key point in our journey from recovery to growth," said CEO Gavin Slark.
"We believe the overall outlook is positive, notwithstanding a slower rate of growth in the second half," he added.