Grafton Group PLC has agreed to acquire the entire share capital of the Spanish Mercaluz Group. This transaction follows Grafton's recent entry into the region via the acquisition of Salvador Escoda, effectively creating an Iberian HVAC powerhouse with combined annualized sales of c. €400 million. The strategic rationale for the deal is the integration of a high-growth, high-margin distributor that utilizes a hub-based delivery model, offering distinct operational synergies with Grafton's traditional branch-based networks. By securing the European rights to the "Johnson" brand through this acquisition, Grafton gains a proprietary product edge in the fast-growing climate control segment. The deal is timed to capitalize on Spain's position as one of Europe's top-performing economies, with the construction sector forecast to grow by 3% to 4% in 2026. The partnership is designed to maintain the existing management team and its 330 employees, ensuring continuity while providing the financial backing of a multinational group to accelerate organic expansion across the Iberian Peninsula and beyond.

Mercaluz is a family-owned Spanish distributor specializing in domestic and commercial air conditioning and HVAC (Heating, Ventilation, and Air Conditioning) equipment. The group operates a highly efficient "direct-to-site" delivery model, utilizing regional hubs rather than a traditional branch network to serve approximately 10,500 professional SME installers. A key value driver is its ownership of the European rights to the "Johnson" brand, which accounted for nearly 75% of its sales in 2025. The company maintains a focused inventory of c.9,000 SKUs, catering primarily to mechanical engineer installers and developers. Strategically, Mercaluz leverages its strong reputation in the Iberian Peninsula to provide scalable, tech-enabled climate control solutions, benefiting from the rapid growth of energy-efficient building requirements in the Spanish construction market.