Irish DIY merger agreed
Heiton Group agrees offer from Grafton
Irish DIY group Heiton Group, owner of the Atlantic Homecare retail chain, has agreed a takeover by building materials firm Grafton.
The two companies are looking to create an enlarged retail and wholesale business better able to compete in both Ireland and the UK mainland.
The deal, a mixture of cash and shares, values Heiton at about €336m. It follows a long courtship by Grafton, which already owns about a third of Heiton shares.
Atlantic Homecare has 13 stores in Ireland, with plans for four more, and also operates builders’ merchants, plant and tool hire company Sam Hire and kitchen fitting business the Panelling Centre. It also owns Heiton Trade UK, a specialist builders merchant which will give Grafton an important foothold in the UK market.
The firms said in a statement: “The enlarged group will continue to pursue a strategy of participating in the ongoing consolidation of the UK merchanting sector, whilst also further strengthening the position of its Irish businesses through small, bolt-on acquisitions and greenfield developments.”
Grafton’s chairman Michael Chadwick told news agency Reuters: “We compete against Kingfisher in DIY and Wolseley in builders merchanting and it makes sense for us to get together to compete with companies of that scale.”
