REG - Grafton Group PLC - Agreement to Acquire HSS Hire Ireland Limited

GraftonAnnouncement

02/04/2025 07:04

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RNS Number : 2444D  Grafton Group PLC  02 April 2025

Grafton Group plc

Agreement to Acquire HSS Hire Ireland Limited

2 April 2025

Grafton Group plc ("Grafton" or "the Group"), the international building
materials distributor and DIY retailer, is pleased to announce that it has
agreed to acquire the entire issued share capital of HSS Hire Ireland Limited
("HSS Hire Ireland") from HSS Hire Group plc for total consideration of
€31.6 million on a cash and debt free basis(1). The acquisition is subject
to approval from the Competition and Consumer Protection Commission (CCPC) in
Ireland.

HSS Hire Ireland is a tool and equipment hire specialist operating from four
branches and four customer distribution centres in the Republic of Ireland,
offering an extensive range of conventional hire products as well as
specialist equipment with a particular focus on powered access.

Following completion, Grafton plans to operate the HSS Hire Ireland business
as part of Chadwicks, its market-leading distribution business in the Republic
of Ireland.  Chadwicks also operates the successful and highly complementary
Sam Hire brand which focuses on smaller plant and tool hire from 23 locations
across the Chadwicks branch network. The acquisition presents a unique
opportunity for Chadwicks to offer a comprehensive national hire service to
its customers from small DIY jobs through to large civil works. The
transaction is fully in line with the Chadwicks strategy to extend its
offering and acquire competencies in product adjacencies.

For the financial year ended 28 December 2024, HSS Hire Ireland generated
adjusted unaudited revenue of €31.9 million and adjusted unaudited EBITA of
€3.9 million on a post IFRS 16 (leases) basis.  The transaction is expected
to deliver an attractive return on invested capital and to be
earnings-enhancing in its first full financial year following acquisition.

Commenting on the acquisition, Eric Born, Chief Executive Officer of Grafton
Group plc, said today:

"We are pleased to have agreed to acquire HSS Hire Ireland which is a
well-respected tool and equipment hire business and brand with a strong and
experienced management team. This transaction is in line with Grafton's
strategy to strengthen our market positions in existing and adjacent markets
and will broaden the offering of our Chadwicks business in the Republic of
Ireland where we continue to see compelling opportunities for further growth."

¹ Total consideration includes reported IFRS 16 lease liabilities of €3.6
million (as at 22 February 2025) and is subject to customary adjustments which
will be set out in completion accounts.

 

Ends

 

 

For further information please contact:

 Investors                                   Media

 Grafton Group plc  +353 1 216 0600          Murray

                                             pwalsh@murraygroup.ie (mailto:pwalsh@murraygroup.ie)

 Eric Born          Chief Executive Officer  Pat Walsh                               +353 1 498 0300

                                                                                     +353 87 226 9345
 David Arnold       Chief Financial Officer
                                             Burson Buchanan

                                             GraftonGroup@buchanancomms.co.uk (mailto:GraftonGroup@buchanancomms.co.uk)

                                             Helen Tarbet                            +44 (0) 7872 604 453

                                             Simon Compton                           +44 (0) 7979 497 324

                                             Toto Berger                             +44 (0) 7880 680 403

 

About Grafton

 

Grafton Group plc is an international distributor of building materials to
trade customers and has leading regional or national positions in the
distribution markets in Ireland, the UK, the Netherlands, Finland and Spain.
Grafton is also the market leader in the DIY, Home and Garden retailing market
in Ireland and is the largest manufacturer of dry mortar and bespoke timber
staircases and windows in the UK.

 

Grafton trades from c.470 branches and has c.10,000 employees. The Group's
portfolio of brands includes Selco Builders Warehouse, Leyland SDM, MacBlair,
TG Lynes, CPI EuroMix and StairBox in the UK; Chadwicks and Woodie's in
Ireland; Isero and Polvo in the Netherlands; IKH in Finland and Salvador
Escoda in Spain.

 

For further information visit www.graftonplc.com (http://www.graftonplc.com)

 

About Chadwicks

 

Chadwicks Group is Ireland's leading distributor of building materials,
operating from 56 branches in the Republic of Ireland under the Chadwicks, The
Panelling Centre, Sam Hire, Davies, Cork Builders Providers, Heiton Steel,
Telfords, Proline, Sitetech and Rooneys brands.

 

For further information visit www.chadwicksgroup.ie
(http://www.chadwicksgroup.ie)

 

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