Business
Agreement to Acquire Mercaluz in Spain
Grafton Group plc has agreed to acquire Mercaluz, a Spanish distributor of air conditioning equipment, for a maximum of €175 million, anticipated to be approximately €165 million on a cash and debt-free basis. In 2025, Mercaluz reported unaudited revenue of €150.4 million and unaudited adjusted operating profit of €22.2 million, with approximately 70% of sales directed towards professional installers. This acquisition, subject to regulatory approval, is expected to be earnings enhancing in its first full financial year and will strengthen Grafton's position in the growing Iberian HVAC market, complementing its existing Salvador Escoda business and creating combined annualised sales of around €400 million. Disclaimer*
About this update from Grafton Group Plc
[{"type":"text","content":"\n\nGrafton Group plc\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\nAgreement to acquire Mercaluz\nSignificant further investment into growing Iberian HVAC market\nGrafton Group plc (\"Grafton\"), the leading European multinational distributor of construction related products and solutions, is pleased to announce that it has entered into an agreement, subject to approval from the Spanish National Commission for Markets and Competition, to acquire the entire issued share capital of Componentes Eléctricos Mercaluz, S.A., Mercaluz Hogar, S.L.U., EAS Electric Smart Technology, S.L.U. and Mercaluz Canarias, S.L.U. (together \"Mercaluz\"). \nMercaluz is a family-owned Spanish group founded in 1986 and headquartered in the province of Alicante on the Iberian Peninsula. It is predominantly a distributor of domestic and commercial air conditioning equipment to professional SME installers, with c.10,500 customers in 2025. Almost three quarters of sales in 2025 were from own brands, primarily the fast-growing Johnson brand, over which Mercaluz owns the European rights. Approximately 70 per cent of sales are aimed at the professional installer market, either direct or through resellers, with the remainder of sales from appliances and white goods which are almost exclusively sold to wholesalers, resellers and developers. \nMercaluz achieved strong growth in 2025 reporting unaudited revenue of €150.4m and unaudited adjusted operating profit1 of €22.2m. The total consideration is a maximum of €175m but anticipated to be approximately €165m on a cash and debt free basis1 which will be determined following completion of the statutory audited results (currently in progress).\nThe existing management team will remain in place, supported by a team of over 330 employees across 18 locations in Spain.\nWith growth of 2.6 per cent in 2025, Spain was amongst the best performing economies in Europe last year. The construction sector is expected to grow by 3 - 4 percent in 2026 with the Heating, Ventilation and Air Conditioning (\"HVAC\") sector amongst the fastest growing categories. The acquisition of Mercaluz represents an important step forward in Grafton's strategy to consolidate and grow its presence in the fragmented Iberian distribution market for construction related products and solutions following the a...