Business
Platform Acquisition of Salvador Escoda, S.A.
Platform Acquisition of Salvador Escoda, S.A..
About this update from Grafton Group Plc
[{"type":"text","content":"\n\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n \nGrafton Group plc\nPlatform Acquisition of Salvador Escoda, S.A. in Spain\n \nGrafton Group plc (\"Grafton\" or the \"Group\"), the international building materials distributor and DIY retailer, is pleased to announce that it has acquired the entire issued share capital of Salvador Escoda, S.A. (\"Salvador Escoda\") from Escoda Sans, S.L. Salvador Escoda, founded in 1974 by Mr. Salvador Escoda Forés, is one of Spain's leading distributors of air conditioning, ventilation, heating, water and renewable products serving professional installers across the residential, commercial and industrial sectors.\n \nThe total consideration payable is a maximum of €132.0 million on a cash and debt free basis (before leases1), with €128.0 million payable at completion and a further €4.0 million payable subject to financial performance conditions. Salvador Escoda reported revenue of €231.8 million and adjusted operating profit on a local GAAP basis1 of €16.5 million for the year ended 31 December 2023. Since 2019, the compound growth rate of revenue has been approximately 9 per cent per annum.\n \nThe acquisition of Salvador Escoda is consistent with Grafton's strategy of acquiring platform businesses with strong and unique propositions offering exciting growth opportunities and which operate in fragmented markets with strong underlying fundamentals. \n \nSpain is the fourth largest construction market in the EU and is forecast to have one of the fastest growing economies in Western Europe over the period 2023 - 20262. The building materials distribution market is highly fragmented and within this market, Heating, Ventilation and Air Conditioning has been identified as one of the strongest growth segments partly as a result of climate change supported by replacement cycle dynamics and a favourable regulatory environment.\n \nSalvador Escoda, headquartered in Barcelona, operates from 93 strategically located branches throughout Spain which are supported by four distribution centres, including a new 18,000 square metre facility in Seville which opened in March 2024. Over the past 50 years, the business has grown to offer a broad suite of over 100,000 products principally supplying the professional installer market with both appliances and ancillary products. ...