DAVY VIEW

The announcement of the acquisition of HSS Hire Ireland looks a judicious use of Grafton’s ample capital resources. HSS Hire Ireland appears a good fit in complementing and extending the group’s offering in the structurally attractive Irish construction market. The terms of the deal look appealing at a multiple of around 8x last year’s trading profit. On a full year’s pro-forma basis, HSS Hire Ireland should add a little under 2% to Grafton’s trading profit base and is expected to be earnings enhancing in its first full financial year post acquisition.