(Alliance News) - Building materials firm Grafton Group PLC on Tuesday said it will acquire wooden staircase manufacturer AVC Ltd, which trades as StairBox, for GBP44 million on a cash and debt free basis.
The payment includes GBP4 million which will be deferred until November 2022.
Stairbox offers staircase services mainly to trade customers operating in the residential repair, maintenance and improvement market in the UK.
For the year to the end of March, Stairbox generated GBP6.1 million in adjusted operating profit and GBP19.5 million in revenue.
"StairBox is a dynamic manufacturing business with a best in class on-line solution at its core. It has an efficient production process, nationwide distribution and strong growth potential. The acquisition of StairBox is in line with our strategy of acquiring specialist high quality businesses with attractive returns. We are delighted with this acquisition opportunity and the skills and experience that the management team under the leadership of Alex Hancock will bring to the group," said Chief Executive Officer Gavin Slark.
Shares in Grafton were up 0.8% at 858.00 pence on Tuesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Grafton Group (GFTU)