Builders merchant and DIY group Grafton Group has agreed a deal to buy Dutch firm Polvo from the privately owned Pallieter Group for €131m.

Polvo is one of the top three leading businesses in the specialist ironmongery, tools, ventilation systems, fixings and related products market in the Netherlands. 

It trades from 51 branches and Grafton said it was "an excellent geographic fit" with its Isero branch network. 

Grafton said the purchase will extend its coverage in the southern, western and eastern regions of the Netherlands and will give it more exposure to new product segments of the market and a more diversified customer base.

It said the combined business will have revenues in excess of €300m and trade from 113 branches.  

Polvo reported revenue of €127.3m and adjusted operating profit of €10.6 million for 2018.  

The acquisition is expected to be earnings enhancing in its first full year of ownership, Grafton said.

"This acquisition will complement our existing Isero business, increase our exposure to the attractive, fast growing Dutch market and support our strategy of creating a more balanced portfolio of businesses internationally," Grafton's chief executive Gavin Slark said. 

"Polvo is a long-established high quality business and brand that gives Grafton a unique opportunity to materially increase its scale and consolidate its market leadership position in The Netherlands," he added.