Grafton Group plc has purchased IKH, one of the largest workwear and personal protective equipment tools, spare parts and accessories technical wholesalers and distributors in Finland.
The consideration payable for IKH is €199.3 million on a cash and debt free basis. It will be paid in cash on completion and will be entirely funded from the Group’s existing cash resources. The acquisition is expected to complete next month.
IKH reported revenue of €158.8 million and an adjusted operating profit of €21.0 million for the year ended 28 February 2021. Gross assets were €101.7 million at 28 February 2021. The acquisition will be earnings enhancing from completion.
IKH, a family owned business founded in 1956 and originally focused on agricultural spares and machinery, has approximately 400 employees and is headquartered in Kauhajoki where its well invested distribution and logistics centre is located. The current experienced management team will remain with the business following completion.
Products are distributed nationally in Finland through a network of independently operated IKH partner stores, third party distributors and ten owned stores located in major cities. 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. Its end customers are primarily SMEs operating in the property construction and renovation, industrial, agricultural and repair shops sectors.
Grafton CEO Gavin Slark said:“The acquisition of IKH is an exciting development that gives Grafton a presence in Finland for the first time and broadens its market position. 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. We look forward to welcoming the IKH management team and their colleagues to Grafton.”