CCPC clears Grafton Group's €32m deal for HSS Hire Ireland
Grafton Group's €32m acquisition of HSS Hire Ireland from its Manchester-based parent HSS Hire Group has been cleared by the Competition and Consumer Protection Commission (CCPC).
Woodie's DIY owner Grafton Group agreed a deal last month to buy the tool and equipment hire firm through its builders merchants subsidiary, Chadwicks. HSS Hire Ireland currently operates four branches and four customer distribution centres.
The London-listed group will pay a total consideration of €31.6m on a cash and debt-free basis, and it intends to operate HSS Hire Ireland as part of Chadwicks, which already has the Sams Hire plant and tool hire business.
"The acquisition presents a unique opportunity for Chadwicks to offer a comprehensive national hire service to its customers from small DIY jobs through to large civil works," Grafton Group said in a statement in April.
"The transaction is fully in line with the Chadwicks strategy to extend its offering and acquire competencies in product adjacencies."
HSS Hire Ireland generated adjusted unaudited revenue of €3.19m and EBITDA of €3.9m last year, and Grafton Group expects the acquisition to deliver an attractive return on invested capital and to be earnings-enhancing in its first full financial year following acquisition.
"We are pleased to have agreed to acquire HSS Hire Ireland which is a well-respected tool and equipment hire business and brand with a strong and experienced management team," said Eric Born, CEO of Grafton Group.
"This transaction is in line with Grafton's strategy to strengthen our market positions in existing and adjacent markets and will broaden the offering of our Chadwicks business in the Republic of Ireland where we continue to see compelling opportunities for further growth."
HSS Hire Ireland said investment from Chadwicks would allow the company to develop and provide new opportunities to grow market share through synergies.
“We are really excited about this partnership with Chadwicks," said Michel Killeen, CEO of HSS Hire Ireland.
"We have a strong track record in Ireland thanks to our market leading powered access, and environmentally friendly fleet of specialist equipment, which is bolstered by a highly experienced management team.
"We are proud of what we have achieved so far, and Chadwicks’ expertise will further support our growth, particularly with our specialist offerings to pharma, data centres, renewable and IT Sectors.”
Grafton Group reported revenue of £773.1m for the first quarter of the year, up 7.8% year-on-year, with average like-for-like revenues at Chadwicks increasing 3.5% on the back of Storm Éowyn.
Grafton Group has completed a €32m deal for HSS Hire Ireland.
In 2024, the group reported an operating profit of £177.5m, slightly ahead of expectations, although down from £205.5m in 2023.
Revenues declined 1.6% to £2,282m, although Chadwick's turnover rose 0.3% to £632.8m, with adjusted operating profit before profit rising 1% to £61.5m.
Photo: Boxer Jennifer Lehane is pictured with Patrick Atkinson, CEO of Chadwicks Group. (Pic: INPHO/Dan Sheridan)
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