Listed British building products distributor, Heywood Williams group, is buying an Irish business for €23 million.

Heywood Williams said yesterday that it has agreed to buy architectural hardware specialist, Avenco. Last year, Avenco had a turn over of €16.5 million. It employs 37 people.

According to Avenco's 2007 annual return, its two directors, Russell Shannon and Seán Basquille, own the business.

Mr Shannon holds 51 per cent. The sale price values his stake at €11.73 million. Mr Basquille holds 49 per cent, worth €11.27 million.

Mr Shannon intends staying with the business and predicted yesterday that Avenco would continue to grow as part of the Heywood Williams group. Mr Basquille is planning to retire.

There will be no other changes. Heywood said yesterday that the managers of Avenco's two operating companies, Eoin Corcoran and Éamon Power, would continue to lead those firms.

Its two operating companies are Locks & Hardware Ltd and Balmar Ltd. They already supply Heywood Williams' Carlisle Brass products in the Republic.

Balmar is based in Ballymount in west Dublin. It supplies materials like locks, door handles and other similar products to the commercial and residential builders.

It was established in 1970 and is focused largely on the Dublin area.

Locks & Hardware began trading seven years ago and distributes a similar range of products across the Republic.

Heywood Williams already has a presence in Ireland through its ownership of Mila, one of the leading specialist distributors of hardware to door and window fabricators in this country.

Heywood is a London-listed business, and supplies branded building products and hardware in Ireland, the UK, Europe and the US.

Its purchase of Avenco will be seen as a vote of confidence in the Irish building industry at a time when growth in the sector is believed to be slowing.

Group chief executive, Robert Barr, said yesterday that the purchase "further enhances our already strong position in the hardware market in Ireland".

Last year, Heywood had sales of £256.2 million sterling (€376.5 million) and profits after tax of £7.5 million. It made a loss the previous year.

Shareholders' funds stood at £30 million, up from £8.4 million at the end of 2005.

The brands it produces and distributes include Mila, Carlisle Brass, Eurospec and Eurolite.

Its North American arm incorporates LaSalle Bristol, a leading distributor to US house builders.

The North American business was responsible for more than £160 million of the group's revenues last year.

Its hardware division, which is focused on Ireland, Britain and other European countries, had sales of almost £95 million.

Last year it bought Carlisle Brass, which makes locks and door fittings.

Commenting on the Irish deal yesterday, Mr Barr said Avenco was a high quality business with an excellent management team.