2nd Apr 2025 09:40
(Alliance News) - Grafton Group PLC on Tuesday said it has agreed to buy HSS Hire Group PLC's Ireland operation for EUR31.6 million.
Dublin-based building materials distributor and do-it-yourself retailer Grafton will buy the tool and equipment hire unit, which has four branches and four customer distribution centres in Ireland, on a cash and debt free basis.
HSS said the sale of HSS Hire Ireland follows the company separating its ProService and Operations offerings, now called the Hire Service Co.
That move was made to "provide the board with additional optionality to maximise future value for shareholders".
The Ireland deal will allow HSS to "continue to focus on driving the long-term performance of these two standalone businesses".
Proceeds will go towards strengthening its balance sheet.
Grafton plans to operate the Ireland business as part of Chadwicks, its distribution business in Ireland.
Chadwicks also operates the Sam Hire brand which focuses on smaller plant and tool hire from 23 locations, Grafton said.
Grafton noted HSS Hire Ireland achieved adjusted unaudited revenue of EUR31.9 million in the financial year to December 28.
It expects the acquisition to be "earnings-enhancing" in its first full financial year.
Grafton Chief Executive Officer Eric Born said: "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."
HSS ProService Chair Steve Ashmore said: "This transaction realises an attractive valuation for our shareholders and is a reflection of our continued strategic progress towards creating a more focused business with two distinct divisions well positioned to deliver enhanced returns when UK construction improves."
Shares in Grafton Group were down 0.7% to 857.00 pence in London on Wednesday morning, while HSS Hire shares jumped 8.7% to 6.78 pence each.
By Michael Hennessey, Alliance News reporter
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