Building supplies firm Grafton is to acquire Dutch tool and fixings distributor Gunters en Meuser (G&M) for an undisclosed sum. The Irish company, which has operations in Ireland, the UK, the Netherlands and Belgium, said it had signed an agreement to acquire the Amsterdam-based firm.

Completion of the transaction is subject to approval by the Dutch competition authority, and is expected to take place in January. G&M trades from 14 branches, and reported revenue of €33.4 million for 2015.

Grafton first entered the Dutch market in November 2015, with the acquisition of Isero. The company said in a statement to the Irish Stock Exchange that the latest acquisition would significantly strengthen and complement the market position of this business.

The combined business will trade from a network of 53 branches, and will become the market leader in the Dutch tools, fixings and ironmongery market where it will have strong positions in the country’s five largest cities.

Grafton chief executive Gavin Slark said: "The acquisition of G&M is a unique strategic opportunity for our existing business in the Netherlands to gain a strong presence in the greater Amsterdam area.

“G&M is a high-quality business and brand that is synonymous with the ironmongery market in Amsterdam where it has traded for 190 years. This will be a further important step in the group’s development strategy in the Netherlands and increases our exposure to the growing Dutch economy.”