The Grafton Group plc has announced the acquisition of the entire issued share capital of Leyland SDM, which is described as being London’s largest independent specialist decorators’ merchant.
The total consideration payable by the Group is £82.4 million on a debt-free, cash-free basis and will be funded from the Group’s cash and debt facilities.
Leyland SDM is regarded as “one of the most recognisable and trusted decorating and DIY brands in Central London” selling paint, tools, ironmongery and accessories. The firm says it prides itself on high levels of customer service, maintaining long standing relationships and carrying a strong reputation with both trade professionals and DIY customers.
The decorators’ merchant operates through a portfolio of stores which have been built up over the last 30 years during its period of family ownership. Its network of 21 convenience-led and predominantly high street stores are situated in some of London’s most prominent locations including King’s Road Chelsea, High Street Kensington, Shaftesbury Avenue, Victoria, Clerkenwell, and Notting Hill.
In the last two years, it has further expanded its footprint with four new stores opened in Battersea, Mile End, Clapham High Street and Putney as well as opening a new Distribution Centre at Wembley.
Grafton says that the Leyland SDM “small box” convenience trading format is a proven business model in Central London that complements the Group’s larger Selco branches located in Greater London.
Leyland SDM’s revenue and underlying EBITA was £47.8 million and £7.3 million respectively for the year ended 31 December 2017. Gross assets are estimated at circa £10.0 million at completion.
Commenting on the agreement, Gavin Slark, Chief Executive Officer of Grafton, said: “The acquisition of Leyland SDM is a unique opportunity to acquire a leading brand with exceptional locations in Central London and expands our presence in a resilient segment of the merchanting market located at the heart of one of the world’s leading cities.”