Grafton Group in second purchase of year with Kent's Allsand Supplies

Grafton Group has further expanded its presence in southern England with the purchase of Allsand Supplies, a single branch general builders merchanting business based in Larkfield in Kent.

The purchase, made for an undisclosed sum, signals the Dublin-based builders merchanting/DIY retailing group’s second English-based bolt-on acquisition since the beginning of this year.

Last month, it bought London-based specialist timber business T Brewer.

The Allsand purchase is its its sixth purchase in a little over a year.

Grafton’s management said the buy “enhances market coverage and complements the existing branch network in the south-east of England.”

Allsand generated revenues of £6m (€8m) in its last financial year, up to the end of last March.

This and other acquisitions are expected to contribute around half of the Dublin group’s profit growth in its current financial year.

Grafton has spent around £100m in the past year.

“While only small, it [the Allsand transaction] represents the latest in a series of small bolt-on acquisitions for Grafton, the majority of which generate above group average margins,” Davy said in a research note yesterday.

“We estimate that acquisitions will add around £10m to the group’s trading profit in 2016, some 50% of the expected year-on-year growth.”

“Our positive stance on Grafton for 2016 is based on a number of key differentiators, one of which is a strong balance sheet, thereby allowing it to consolidate the UK market,” said Robert Eason of Goodbody Stockbrokers.