Dublin Providers Ltd, the family-owned builders merchants, is set to expand into the midlands with the acquisition of the Co Westmeath supplier Oliver Brennan (Mullingar) Ltd., writes Arthur Beesley, Senior Business Correspondent.
The proposed deal comes amid a period of rapid consolidation in the DIY and building supply market. Dublin Providers already has outlets in Kilmainham and Dún Laoghaire in Dublin, and in Drogheda, Dundalk, Wexford, Cork and Galway.
Dublin Providers' managing director Jerry Maher was not in his office to respond to queries yesterday and Oliver Brennan declined to comment when contacted at his shop in Mullingar. However, senior business sources believe the deal is complete or imminent.
The consolidation of the Irish market mirrors developments in Britain, where the top five players now hold 80 per cent of the market. They held only 28 per cent 10 years ago.
The talks between Dublin Providers and Oliver Brennan (Mullingar) reached an advanced stage last week. The amount that Dublin Providers will pay for the company is not known.
Dublin Providers, trading as DPL Group, sells building materials and bathroom suites to the trade and to the public. According to the most recent accounts for DPL Group, the company's annual pretax profits rose to €5.13 million last year from €4.43 million in 2003.
In the same period, the company's turnover rose to €82.2 million from €76.92 million.
The accounts also indicate that the company has money to spend, with retained profits of almost €20 million at the start of this year and net assets of €37.86 million.
Abridged accounts for Oliver Brennan (Mullingar) show that retained profits rose to €1.79 million in 2003 from €1.4 million in 2003.
The 2004 accounts have been lodged but are not yet publicly available. At the beginning of the year, the company had €1.17 million cash in the bank.
Grafton Group said on Tuesday that it had acquired Roscommon merchant Garvey's and Dublin firm Davies, which has a plumbing and bathroom business. These transactions follow Grafton's €338 million acquisition of the Heiton's chain earlier this year, and the company remains on the lookout for further acquisition opportunities.
The Competition Authority was notified of these deals and raised no objection.
