Builders merchants continue to expand

BUILDERS merchants and DIY group Heiton yesterday reiterated to shareholders that the company had a bright future as an independent entity, a day after the stock exchange turned up the heat on rival Grafton’s takeover plans.

Writing in Heiton’s annual report, chief executive Leo Martin told shareholders that the company had plans of its own to acquire other businesses in Ireland, Britain and continental Europe.

Mr Martin said Heiton, whose brands include Heiton Buckley, Atlantic Homecare and Cork Builders Providers, continued to develop a pipeline of potential acquisitions and identify greenfield sites for new stores. It would also examine opportunities in other countries that joined the EU in May, he said.

Heiton’s future was thrown into sharp focus last month when it rejected a takeover approach from Grafton that valued the company at €325 million, or €6.35 per share.

The Irish stock exchange’s Takeover Panel moved to end the uncertainty over Heiton’s future on Wednesday when it imposed a deadline of August 6 for Grafton to make a formal offer for Heiton. Grafton already owns a 29% stake in Heiton, but will be blocked from tabling a bid for 12 months if no offer has been made by then.