The acquisition of Heiton will not prevent Grafton from going after other deals in Britain and Ireland in the future, according to the offer document sent to Heiton shareholders on Thursday evening.
Heiton shareholders are told that the enlarged group will follow Grafton's "previously-stated strategy" due to the similarity of the two businesses.
"The enlarged group will continue to pursue a strategy of participating in the ongoing consolidation of the UK merchanting sector," Grafton says.
The firm goes on to say that it will develop the Irish business of the enlarged group through "small, bolt-on acquisitions and greenfield developments". It is likely that competition problems would prevent large-scale Irish expansion after the €353 million Heiton deal, which would leave Grafton with the top market position in both DIY and merchanting.
The offer document also reveals that Grafton would receive a €3.36 million payment from Heiton if the offer was withdrawn or lapsed and a successful third party emerged.
Heiton chairman, Mr Richard Keatinge, meanwhile is to receive a €100,000 once-off sum in respect of the additional work he has done on the takeover.
The offer document sets September 30th as the first closing date on the bid. Grafton has already received non-binding letters of intent from Heiton directors who say they will accept the offer in respect of their collective 2.4 per cent holding.
Other shareholders controlling 11.2 per cent have done the same, with Grafton naturally to vote yes in respect of its existing 28.8 per cent stake.
Grafton has offered €2.64 in cash and 0.58667 of a Grafton unit for each Heiton share. The Grafton share price to be used to establish how much will be paid in the end will be settled when the offer becomes unconditional.
When Grafton first agreed the offer with the Heiton board in August, its shares were trading at €6.71. They have since climbed above €7.20, raising the overall price being offered for Heiton by €14 million to €353 million.
