Building materials distributor Grafton Group has agreed a deal to buy workwear and personal protective equipment maker IKH in Finland for €199.3m.
The deal will be paid for in cash and is expected to complete next month.
"The acquisition of IKH is an exciting development that gives Grafton a presence in Finland for the first time and broadens its market position," Grafton's chief executive Gavin Slark said.
"It will also strengthen the group's operations in the mainland European market in line with our international development strategy," the CEO said.
"IKH is a high-quality business with a strong market position and an experienced management team that provides Grafton with a new growth platform in the Nordic Region," he added.
IKH reported revenue of €158.8m and an adjusted operating profit of €21m for the year ended 28 February 2021 and its gross assets stood at €101.7m at the end of February.
Grafton said the deal will be earnings enhancing when it is completed.
IKH is a family owned business founded in 1956 and originally focused on agricultural spares and machinery.
It has about 400 employees and is headquartered in Kauhajoki where its distribution and logistics centre is located.
Grafton said the company's current experienced management team will remain with the business with the deal is complete.
