19th Mar 2026 11:50
Grafton Group PLC - Dublin-based building materials distributor - agrees to acquire the Spanish, family-owned Mercaluz group, consisting of Componentes Electricos Mercaluz SA, Mercaluz Hogar SLU, EAS Electric Smart Technology SLU and Mercaluz Canarias SLU. Consideration is up to EUR175 million but Grafton expects it to total approximately EUR165 million. Mercaluz, based in the Iberian Peninsula's Alicante province, distributes domestic and commercial air conditioning equipment to professional specialist mechanical engineer installers, and holds European rights to the "fast-growing" brand Johnson. Grafton notes Mercaluz's "strong growth in 2025", including unaudited revenue of EUR150.4 million and adjusted operating profit of EUR22.2 million. Says the acquisition consideration will be determined following completion of the statutory audited results. Expects the takeover to be earnings-enhancing in its first full financial year, followed by an "attractive" medium-term return on invested capital. Also notes that Spain "was amongst the best performing economies in Europe last year", with the construction sector forecast to grow by between 3% and 4% this year.
Highlighting Grafton's "growing presence in Iberia", Chief Executive Officer Eric Born comments: "Mercaluz has all the characteristics we are seeking in an acquisition; from the growth segment and markets it serves to its scalability and reputation in the trade. Subject to regulatory approval, it will further cement our position in the fast-growing Iberian [heating, ventilation and air conditioning] market with combined annualised sales of some EUR400m and is a further step in our ambition to build a significant business distributing construction related products and solutions in Iberia."
Current stock price: 910.90 pence
12-month change: up 3.2%
By Emma Curzon, Alliance News reporter
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