British Graphton Group buys Catalan Salvador Escoda for 132 million

Grafton GroupThe international UK building materials distributor and DIY retailer has entered into an agreement to purchase 100% of the capital of the Catalan company. Salvador Escoda, SA To 132 million euros. The company, founded in 1974 by Salvador Escoda Fores, is one of the main Spanish distributors air conditioning, ventilation, heating, water supply and renewable products Serving professional installers in the residential, commercial and industrial sectors.

Payment for the operation 128 million euros in cash will be allocated for this. after the final closing of the transaction and another 4 million, subject to compliance with financial indicators. Salvador Escoda reported revenue of €231.8 million and adjusted operating profit of €16.5 million for the year ended December 31, 2023. Since 2019, the cumulative revenue growth rate has been approximately 9%, The British group, which is listed on the London Stock Exchange, stands out from the rest.

The UK company, which has a market value of around €2.4 billion, includes the acquisition as part of its strategy “to acquire platform companies with strong and unique offerings that offer exciting growth opportunities and operate in fragmented markets with strong fundamentals.”

Spain is the fourth largest construction market in the European Union (EU) and is forecast to become one of the fastest growing economies in Western Europe between 2023 and 2026, according to Graphton Group. In turn, the sales market for building materials It’s very fragmented and within this heating, ventilation and air conditioning were identified as one of fastest growing segmentsor partly as a result climate change. All this is also supported by the dynamics of the product replacement cycle and a favorable regulatory environment, says the British firm.

More than 40,000 clients and 20 own brands

Salvador Escoda, based in Barcelona, ​​operates from 93 branches strategically located throughout Spain. which are supported by four distribution centers, including a new 18,000 square meter facility in Seville which opened in March 2024.

The company has more than 40,000 customers and more than 20 of its own brands. Over the last 50 years the business has grown to offer a range of over 100,000 products, primarily supplying to the market of professional installersboth with household appliances and auxiliary products. Over 50% of sales come from high quality private labels such as Mundoclima in air conditioning and Escoclima in ventilation. According to the buyer, the existing management team will remain supported by Salvador Escoda Fores as president emeritus, as well as a team of more than 750 colleagues.

The British company hopes the deal will boost profits in the first full year after acquisition. Graphton intends to support Salvador Escoda in the development of its brand, its ongoing organic expansion, as well as the implementation of inorganic opportunities in the Iberian market, which is characterized by its fragmentation.

Eric BornThe UK firm’s CEO, said the acquisition is “perfectly aligned with Graphton’s strategy of acquiring platform businesses in new markets that have strong and unique offerings with the ability to deliver greater growth and scale. We see long-term structural growth in the Spanish economy.” and fragmented markets for construction products. Salvador Escoda’s leading proprietary brands in HVAC categories represent a new adjacent channel for Graphton. We look forward to working with a highly qualified team and successfully building on their rich heritage. and accelerate an impressive track record of growth.”