Grafton buys Finland's IKH for €199m

Building materials distributor and DIY retailer Grafton said it had bought Finland’s family-owned IKH for €199.3m in cash.

IKH is one of Finland’s largest distributors of workwear and personal protective equipment, tools, spare parts and accessories, Grafton said on Tuesday.

The deal, which will be earnings enhancing from completion, will be funded from existing cash resources and is expected to complete next month.

IKH reported revenue of €158.8mn and an adjusted operating profit of €21m for the year to February 28, 2021 with gross assets of €101.7m .

The company was founded in 1956 and originally focused on agricultural spares and machinery. It has around 400 employees and is headquartered in Kauhajoki where its distribution and logistics centre is located. The management team will remain with the business following completion.

Products are distributed through a network of independently operated IKH partner stores, third party distributors and 10 owned stores located in major cities. IKH is also developing a market presence in Sweden and Estonia through exports to a network of local partner stores, Grafton said.