Agreement to acquire Polvo Group

Grafton Holding Netherlands, the parent company of Isero IJzerwarengroep ("Isero") announces that it has entered into a conditional agreement to acquire Polvo Groep ("Polvo"). Polvo is a distributor of tools, hardware, fasteners and ironmongery operating from 51 branches in the south, west and east of the Netherlands. The 9 owned premises are also part of the transaction.

Upon completion of the transaction, Grafton's position in the Dutch hardware market will be further strengthened and it will operate from a branch network of 113 locations. This is an important step in Grafton's growth-oriented strategy in the Netherlands and follows the acquisition of Isero in November 2015 and then the acquisitions of Gunters and Meuser and Scholte & de Vries - Estoppey in 2017. The Polvo Group will continue to operate as an independent company.

Approval for the transaction has been sought from the competition authority and advice has been sought from the works councils. The transaction is expected to close before the end of the second quarter of 2019.

Bert Bunschoten, managing director of Isero commented today, "Polvo has a strong position in the south of the country and further strengthens our market position in the other regions where we operate. It is a quality company with strong management and a similar corporate culture. Its approach with strong local branches combined with customer deliveries from a central distribution center in Moerdijk, is supported by high stock availability, product and market knowledge and value-added services. The acquisition will eventually allow Isero's customers to also use Polvo's branch network." Grafton Holdings Netherlands continues to invest in further growth opportunities through acquisition of companies that are complementary and further strengthens coverage of its existing business in the hardware market."

Willem van Meurs, managing director of Polvo added, "The approach and culture of Polvo and Isero fit well together. The joint companies strengthen each other with a similar approach based on in-depth product knowledge. The support of Grafton internationally and Isero in the Netherlands offers our company the opportunity for further growth in adjacent areas. In addition, Polvo has unique experience in supplying carpentry factories and offers ventilation technology solutions, which gives a nice extension of Isero's offering."

About Grafton
Grafton, headquartered in Dublin, is an international company and active in the wholesale of building materials and has leading positions both regionally and nationally in the United Kingdom, Ireland, the Netherlands and Belgium. Grafton is also active in the DIY market in Ireland and the largest manufacturer of dry mortar in the United Kingdom. The Group has approximately 675 sites and nearly 13,000 employees. www.graftonplc.com

About Isero
Isero is the wholesaler for tools, fasteners, hardware and related products. The group includes Gerritse IJzerwaren, Breur Ceintuurbaan, Gunters and Meuser, Scholte & de Vries - Estoppey, Pijnenburg Bouw en Industrie, Van Der Winkel and Freke burglary protection. With 62 branches, its unique finely meshed and fast logistics, experienced service-oriented employees, Isero focuses mainly on construction, maintenance and installation companies. All Isero branches apply the '1 | 2 | 3| concept': the customer is central and can count on convenience, speed and keeping appointments. www.isero.nl

About Polvo
The Polvo Group, consists of 50 sales locations in the south, west and east of the country. Polvo operates under the following brand names: Leys, Holtgrefe, van der Stad, Kruyt, Lekkerkerker, Van Enckevort, Dubson, De Schakel, Hendriks, Van der Ham, Zwaard, and Kobam. The company supplies quality products in the areas of electric and hand tools, hardware, hardware, building hardware and sanitary ware. GKL also belongs to the Polvo Group and is a specialist in ventilation grilles and ventilation technology on and around the facade. www.polvobv.nl