Grafton Group plc (GFTU.L, GROUF), a builders' merchants business, on Thursday said it agreed to acquire the entire issued share capital of Componentes Eléctricos Mercaluz, S.A., Mercaluz Hogar, S.L.U., EAS Electric Smart Technology, S.L.U. and Mercaluz Canarias, S.L.U.
The Spain-based group is a distributor of air conditioning equipment.
The maximum consideration is 175 million euros and is expected to be about 165 million euros on a cash- and debt-free basis.
The transaction is subject to approval from Spain's competition authority.
Mercaluz reported unaudited revenue of 150.4 million euors and adjusted operating profit of 22.2 million euors for 2025.
The acquisition strengthens Grafton's presence in the fast-growing Iberian HVAC market and follows its earlier acquisition of Salvador Escoda in October 2024.
Mercaluz serves around 10,500 customers and generates nearly three quarters of its sales from own brands, primarily the Johnson brand, with about 70% of sales targeting professional installers.
The existing management team will remain in place, supported by more than 330 employees across 18 locations in Spain.
Grafton expects the acquisition to be earnings-enhancing in its first full financial year and to deliver attractive returns over the medium term.
The company plans to support Mercaluz's brand development and organic expansion while benefiting from purchasing synergies alongside Salvador Escoda.
On Wednesday, Grafton Group closed trading 0.61% lesser at GBp 910.70 on the London Stock Exchange.
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