The Grafton Group has announced it plans to acquire the seventh-largest builders merchant in Britain, Jackson Building Centres, for €135.4 million.
The British builders' provider had an estimated turnover last year of close to £130 million, with pre-tax profits of £6 million, and the acquisition will give Grafton an 8 per cent share in the British market.
The Irish building firm is to raise €70.6 million through a rights issue to partly fund the acquisition.
Speaking on RTÉ radio this morning, Grafton's chief executive, Mr Michael Chadwick, said the company had decided on a rights issue as funding the acquisition solely through debt would leave Grafton over-extended.