Salvador Escoda Acquired by Grafton Group with EY's Guidance
Deal News | Nov 13, 2024 | Iberian Lawyer
Grafton Group, a notable player in the Iberian market, has acquired the entire issued share capital of Salvador Escoda, a leading Spanish distributor in the HVAC sector, with the assistance of EY. The acquisition was valued at up to €132 million, with €128 million payable at completion and an additional €4 million contingent on financial performance. The transaction is expected to boost earnings in Grafton's first full financial year post-acquisition, promising a worthwhile return on invested capital over the medium term. Grafton plans to fortify Salvador Escoda's brand while pursuing both organic growth and potential acquisitions in the fragmented Iberian marketplace. EY conducted financial and tax due diligence, led by Sonia Diaz and her seasoned team. Salvador Escoda will continue to operate with its current management team, with Mr. Salvador Escoda Fors as Honorary Chair.
Sectors
- HVAC Distribution
- Professional Services
- Building Materials and Construction
Geography
- Spain – Salvador Escoda operates primarily in Spain, marking the geographical focus of the acquisition.
- United Kingdom – Grafton Group is a UK-based company involved in the acquisition.
Industry
- HVAC Distribution – The article focuses on Salvador Escoda, a distributor in the HVAC sector, underpinning the relevance of this industry.
- Professional Services – EY provided financial and tax due diligence services for the acquisition, highlighting the involvement of professional services.
- Building Materials and Construction – Grafton Group operates within this sector, emphasizing its strategic acquisition in the building materials space.
Financials
- 132,000,000 – Total acquisition price of Salvador Escoda by Grafton Group.
- 128,000,000 – Amount payable upon completion of the acquisition.
- 4,000,000 – Contingent on Salvador Escoda's financial performance.
- 231,800,000 – Reported revenue of Salvador Escoda for 2023.
- 16,500,000 – Adjusted operating profit of Salvador Escoda for 2023.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Salvador Escoda | Target Company | Company | A leading Spanish distributor of HVAC products, acquired by Grafton Group. |
| Grafton Group plc | Bidding Company | Company | A UK-based group acquiring Salvador Escoda to expand its market presence. |
| Escoda Sans | Selling Company | Company | The company from which Grafton Group acquired Salvador Escoda. |
| EY | Financial and Tax Advisor | Company | Provided advisory services, including due diligence, for the acquisition. |
| Sonia Diaz | Partner - Tax Team | Person | Led the EY tax team for the acquisition process. |
| Stephen Hunter | Corporate Development Director | Person | Coordinated the transaction for Grafton Group. |