Grafton Group acquires Finnish wholesaler IKH for €200 million

Isojoen Konehalli Oy and Jokapaikka Oy (IKH), one of the largest workwear and PPE, tools, spare parts and accessories technical wholesalers and distributors in Finland, has been purchased by Grafton Group, the group behind Selco, Buildbase, Polvo and Woodies.

Grafton paid €199.3 million on a cash and debt free basis for IKH after agreeing with Mr Ilkka Alakortes and his family to acquire the firm, which has circa 400 employees. The acquisition is expected to complete next month.

Founded in 1956, originally focusing on agricultural spares and machinery, the Kauhajoki-headquartered IKH reported revenue of €158.8 million and adjusted operating profit of €21 million (13.2%) for year end 28 Feb 2021.

"The acquisition of IKH is an exciting development that gives Grafton a presence in Finland for the first time and broadens its market position," said Grafton CEO Gavin Slark. "It will also strengthen the Group's operations in the mainland European market in line with our international development strategy. IKH is a high-quality business with a strong market position and an experienced management team that provides Grafton with a new growth platform in the Nordic Region. We look forward to welcoming the IKH management team and their colleagues to Grafton."

IKH's product portfolio of over 50,000 SKUs comprises quality private label and leading technical brands offering a wide and deep ranges in Finland where it has a number two market position in its core tools and PPE segment. Products are distributed nationally in Finland through a network of independently operated IKH partner stores, third party distributors and ten owned stores located in major cities. IKH is currently developing a market presence in Sweden and Estonia through the export of its product ranges to a network of local partner stores. End customers are primarily SMEs operating in the property construction and renovation, industrial, agricultural and repair shops sectors.

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