EY advises on the acquisition of the entire issued share capital of Salvador Escoda

EY has advised Grafton Group plc on the acquisition of the entire issued share capital of Salvador Escoda from Escoda Sans. EY’s advisory services included financial and tax due diligence.

Salvador Escoda, founded in 1974, is a leading Spanish distributor of air conditioning, ventilation, heating, water, and renewable products. The acquisition, valued at up to €132.0 million (on a cash and debt free basis), includes €128.0 million payable at completion and €4.0 million subject to financial performance. Salvador Escoda reported €231.8 million in revenue and €16.5 million in adjusted operating profit for 2023. The company operates 93 branches and four distribution centers across Spain, with a strong presence in the HVAC market. The existing management team will remain in place, supported by Mr. Salvador Escoda Forés as Honorary Chair.

The transaction is expected to be earnings enhancing in its first full financial year following acquisition and to deliver an attractive return on invested capital in the medium term. Grafton intends to support Salvador Escoda in its brand development. As well, ongoing organic expansion, and, in due course, the execution of inorganic opportunities in the fragmented Iberian marketplace.

The EY tax team was led by Sonia Diaz (partner), Elia Alonso (manager), Elena Garcia (senior), and Rita Diez (junior) with the assistance of the Excise duties tax team led by Hugo Gonzalez (partner) and Sandra Fombuena (senior manager).

From Grafton’s side, the transaction was coordinated by Charlie Steedman, group corporate vevelopment manager, and Stephen Hunter, corporate development director.