Grafton Group PLC
1 February 2000
GRAFTON GROUP PLC
ACQUISITION OF LEADING PLUMBERS MERCHANT
IN THE SOUTH WEST OF ENGLAND
Grafton Group plc announces that it has acquired the business of E.J. Thompson
& Company Ltd, a successful plumbers merchant based in South-West England.
The consideration is expected to be circa Stg£9.5million, payable in cash, and
is being funded from the Group's existing resources.
Thompsons trades from 21 branches located principally in Cornwall, Devon and
Somerset. The business being acquired fits well with our existing plumbers
merchanting business, Plumbase, whose branches are mainly located in South and
South East England. The combined businesses will operate from 65 branches
giving extensive coverage in Southern England.
Commenting on the acquisition, Michael Chadwick, Grafton Group Chairman, said:
'Thompsons is a well-managed business with leading positions in its market.
We are confident that the profitability of the business can be further
improved as part of Grafton Group and we expect the acquisition to be earnings
enhancing for Grafton in the current year.'
Thompsons' turnover for the last financial year to 30 June 1999 was Stg£33.1
million and profit before tax was Stg£1.25. The net assets acquired of circa
Stg£6.9 million are free of debt.
Grafton Group in recent years has developed a strong presence in UK
merchanting predominantly in the South East, South and Midlands and now
operates from over 120 merchanting branches.
Grafton Group's main activities are builders and plumbers merchanting, DIY
retailing, plastic and concrete products manufacturing in Ireland and the UK.
FOR REFERENCE:
Michael Chadwick
Executive Chairman
Grafton Group plc
Tel: (++353)(01) 216 0600
Joe Murray
Murray Consultants
Tel: (++353)(01) 661 4666
Ginny Pulbrook
Citigate Dewe Rogerson
Tel: (++44)(0171) 638 9571
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