MERCALUZ acquired by GRAFTON GROUP

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.