21st Oct 2013 10:41
LONDON (Alliance News) - Builders merchants and DIY products company Grafton Group PLC Monday said it has reached a deal to acquire Belgian merchanting business Binje Ackermans SA, which trades under the MPRO brand, for EUR20.5 million, its first buy since moving its main listing to London.
Last week the company completed its move to the London Stock Exchange, a change it hopes will mean it is included in a FTSE index from December, boosting its profile and attracting more international investors. Although no longer listed in Dublin, it remains headquartered in the city and will pay its tax in Ireland.
Grafton said MPRO reported a loss of EUR2.2 million in 2012 including a charge for amortisation of intangibles and restructuring costs, but the acquired business, based in Brussels and operating from six stores, is forecast to operate at breakeven in 2013. Revenues in 2012 were EUR50 million.
Grafton said MPRO's branches are a good geographic fit with its existing branches located in the west of Belgium.
"The proposed acquisition creates opportunities for scale related benefits and operational synergies in the areas of procurement, central services and the sharing of best practice while also providing a solid base for future growth in the Belgian merchanting market," Chief Executive Gavin Slark said in statement.
The stock was trading down 0.3% at 633.10 pence Monday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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