Grafton Group plc (GFTU.L), a distributor of building materials, on Wednesday announced that it has agreed to acquire HSS Hire Ireland Ltd. from HSS Hire Group plc (HSS.L) for 31.6 million euros on a cash and debt free basis.
The total consideration includes reported IFRS 16 lease liabilities of 3.6 million euros.
The acquisition is expected to provide strong returns and boost earnings in its first fiscal year following the deal closure.
The acquisition requires approval from Ireland's Competition and Consumer Protection Commission or CCPC.
After the acquisition, Grafton will integrate HSS Hire Ireland, a tool and equipment hire specialist, into Chadwicks, its distribution business in the Republic of Ireland. Chadwicks also operates Sam Hire, a brand specializing in small plant and tool rentals across 23 locations.
The acquisition allows Chadwicks to offer a full range of national hire services, from DIY jobs to large civil works. The deal supports its strategy to expand services and gain expertise in related products.
In the financial year ending December 28, 2024, HSS Hire Ireland reported adjusted revenue of 31.9 million euros and EBITA of 3.9 million euros under IFRS 16 leases basis.
On Tuesday, Grafton closed trading at 863 pence, 0.45% higher on the London Stock Exchange.
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