Grafton Group says it will be “business as usual” at Jackson Building Centres after its acquisition of the east Midlands-based builders and timber merchant is complete.
Dublin-based Grafton announced its €135.4m (£88.75m) purchase of the 18-branch Jackson chain on February 4. It hopes to complete the deal by March.
A Grafton spokesperson said that there were no plans to change Jackson’s product mix and involvement in timber post-takeover. “The acquisition will not effect day to day operation of the business.”
Grafton also pledged that Jackson will not be assimilated into its Buildbase chain “in the short term”.
Jackson, established in 1946, is the UK’s seventh-biggest builders merchant with estimated sales and pre-tax earnings last year of £130m and £6.1m. The acquisition consolidates Grafton’s status as fourth biggest merchant, taking its outlet total to 245. “Jacksons is well-managed and has high brand recognition in an area which complements our south-east and Midlands network,” said Grafton executive chairman Michael Chadwick.
He maintained the purchase will produce “financial benefis” of £6.5m” within three years.
Simon Jackson, Jacksons joint managing director, is happy with the Grafton takeover. “We have a similar culture and like their acquisitions to run fairly independently . They realise the value of the people in the business and will give them opportunities.”
Mr Jackson said the timber element of the company stands at around 10-11% of turnover . “It is an area that has been growing within our operation and I think that will continue”. The company machines its own timber and recently got into timber engineering by buying a Lincoln trussed rafter plant. “We’re always looking to get into markets our existing customers are using and truss manufacturing is one”, he said.
Grafton, which achieved group sales of €1.15bn last year, with pre-tax profits at €80m, says it is planning further expansion in the UK.
