Heiton chief set for Irish role in Grafton

Heiton chief executive Mr Leo Martin is expected to take charge of Grafton's Irish merchanting business after the two companies merge operations.

Grafton said on Thursday that it would pay €336 million to acquire Heiton. The Heiton board has recommended the deal, which remains subject to approval from the Competition Authority.

It emerged on Thursday that Mr Martin, who has been chief executive of Heiton since 1999, would join the Grafton board under the terms of the takeover.

It is now believed that he will assume responsibility for the €600 million Irish merchanting business that will emerge if the two companies are joined.

A combination of Heiton's merchanting arm, Heiton Buckley, with Grafton's Chadwicks chain would extend Grafton's merchanting reach to more than 50 branches. This would leave the enlarged firm with a 19 per cent market share, according to Grafton's estimates.

Grafton finance director Mr Colm Ó Nualláin told analysts during a conference call yesterday that there was "relatively little overlap" between the two chains.

Grafton executive chairman Mr Michael Chadwick went on to scotch the notion that some of Heiton's outlets would be sold as part of the acquisition. "We're certainly thinking of progressing with the entire Heiton business. That's our starting point."

It is thought that Mr Martin will be in charge of Irish merchanting as part of a wider role with Grafton, although neither party was prepared to comment on this last night.

Mr Chadwick may view Mr Martin as an able successor to Mr Norman Kilroy, who retired as Grafton managing director earlier this year.

Mr Kilroy had overseen Grafton's Irish operations with the support of Woodie's DIY chief executive Mr Ray Colman.

Mr Colman is likely to take responsibility for Heiton's DIY wing, Atlantic Homecare, after the acquisition. A combined Woodie's/Atlantic entity would have a 15 per cent share of the Irish DIY market with sales of €150 million from 31 stores, according to Grafton estimates.

Mr Martin, who participated in the conference call alongside Grafton's executives, said he was excited about the acquisition. "I am very pleased to have the opportunity to join Michael Chadwick and his team," he said.

Grafton's advisers are hopeful that the need for Competition Authority approval will not hamper the conclusion of the takeover.

The deal is not likely to require approval from British competition authorities. The combined UK merchanting interests of the two firms would leave Grafton with a 9 per cent share of that market.