GRAFTON, the Woodies DIY group, has acquired Abbey Rose, a builders supply company, in Peckham, London, for £1.75 million sterling, in a further expansion of its British operations.

This brings the value of acquisitions so far this year up to £11.75 million, excluding the £6.1 million it paid for a minority stake in British Dredging. Businesses acquired this year had combined sales of £38 million.

Grafton said following the recent acquisitions of FKS Builders Merchants in Newbury, Hendricks Lovell in Hayes and, Wilts hire Builders Suppliers in Swindon - that the latest purchase complements and strengthens the group's network of builders merchanting branches in the south of England.

Abbey Rose, a long established family business concentrates on the supply of heavy side building materials to customers in the London area. It generated sales of £1.9 million in 1996.

No profit figures have been disclosed but the company is understood to have generated over £100,000 per annum before directors payments. Profits have been static. The transaction will result in a goodwill item of £150,000 but the company has cash of some £700,000.

Grafton's executive chairman, Mr Michael Chadwick, said Abbey Rose was a "nice business" and "well located". Asked about other acquisitions, he said the group had set no limits but it would be "very selective". It was looking at a number of other possible acquisition, one of which was fairly advanced.

Grafton acquired 24.9 per cent of British Dredging, a British publicly quoted builders merchants company last May.

Asked about board representation and the possibility of making a bid for the remaining equity, Mr Chadwick said he had no comment to make. "We have a lot on our plate" integrating the recent acquisitions, he said.