By Joe Hoppe
ACQUIRER: Grafton Group PLC, a building-materials distributor.
SELLER: Ilkka Alakortes and his family, owners of the business.
TARGET: Isojoen Konehalli Oy and Jokapaikka Oy, or IKH, a workwear and personal protective equipment, tools, spare parts and accessories wholesaler and distributor in Finland.
PRICE: 199.3 million euros ($237.6 million) on a cash and debt-free basis, payable on completion.
STATUS: Signed and agreed.
EXPECTED CLOSE: Next month.
RATIONALE: IKH has reported more than twenty years of revenue growth, has a lean cost base, scale-related benefits and a strong product procurement strategy, the company said. It reported revenue of EUR158.8 million and adjusted operating profit of EUR21.0 million in the year ended Feb. 28.
QUOTATION: “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,” Chief Executive Gavin Slark said.
Write to Joe Hoppe at firstname.lastname@example.org
Corrections and Amplifications
This was corrected at 7:31 a.m. ET because it misstated that the purchase price was equivalent to $277.7 million. Grafton acquired IKH for 199.3 million euros, or $237.6 million.
Grafton acquired IKH for 199.3 million euros, or $237.6 million. “Grafton to Acquire Finland’s IKH for EUR199.3 Mln — Deal Digest,” at 0631 GMT, incorrectly said the acquisition price was equivalent to $277.7 million.
View more information: https://www.marketwatch.com/story/grafton-to-acquire-finland-s-ikh-for-eur199-3-mln-deal-digest-271624343499