Download full report with analyst certification and important disclosures
Apr 11 2019, 08:15 IST/BST
Grafton has further diversified its regional and product mix with the acquisition of Polvo in the Netherlands. The deal is consistent with management’s aim to improve both the market position and margin profile of the group. Crucially, this is happening without stretching the balance sheet. We estimate that net debt/EBITDA will rise to just 0.3x following the deal. This financial muscle underpins our positive view on the stock.