DAVY VIEW

Grafton has announced its long-awaited platform deal with the acquisition of Salvador Escoda for a consideration of up to €132m. The transaction, undertaken at an attractive multiple of around 8x 2023 adjusted operating profit, is notable as its marks the group’s entry into Spain as well as into a new adjacent channel (heating, ventilation and air conditioning). What is exciting is that it also provides the platform for further expansion while adding around 10% to overall revenues on an annualised basis. In addition, Grafton brought forward its planned trading update and indicated that full-year adjusted operating profit will be “broadly in line” with expectations.