Grafton Group has agreed a deal to acquire Irish offsite timber frame manufacturer Cygnum Holdings Limited, subject to regulatory approval.

The European distributor of construction products and solutions said it had entered into an agreement to purchase the entire issued share capital of the company, with the transaction subject to approval from Ireland's Competition and Consumer Protection Commission (CCPC).

Founded in 1997 and headquartered in Macroom, County Cork, Cygnum is a made-to-order supplier of offsite timber frame solutions for developers and contractors operating in the Irish housing market.

According to unaudited figures, the company generated revenue of €45.6 million in 2025 and recorded an adjusted operating profit of €7.9 million. The value of the deal has not been disclosed, although Grafton said the consideration reflects market precedent valuations.

The group added that the acquisition is expected to be earnings-enhancing in its first full financial year after completion and to deliver an attractive return on invested capital. Cygnum’s existing management team will remain in place and will be incentivised to grow profitability under certain performance conditions.

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The deal comes amid rapid growth in modular and timber frame construction in Ireland's housing sector. Data from the Irish Timber Frame Manufacturers' Association shows timber frame solutions were used in 37 per cent of low-rise housing schemes in 2019, while figures from the Department of Housing, Local Government and Heritage suggest that by the second half of 2025, 61 per cent of homes in scheme developments had notified an intention to use timber frame construction.

Ireland completed just over 36,000 homes in 2025, while the government has set a target of delivering 60,000 homes a year by 2030 to address a long-term housing shortage.

Following completion, Grafton plans to operate Cygnum as part of Chadwicks Group, its distribution business in the Republic of Ireland. The company said the move aligns with Chadwicks’ strategy to expand its offering and develop capabilities that support modern methods of construction.

Eric Born, Chief Executive of Grafton Group plc, said: "We are very pleased to have agreed to acquire Cygnum which is a well-established business with a strong and experienced management team.

"This acquisition strongly complements Chadwicks Group's trade portfolio and supports the faster, more efficient delivery of new homes to help address Ireland's structural housing shortage. For Grafton, it provides an opportunity to increase our exposure to the new-build market and to support Cygnum customers with access to a broader range of construction related products and solutions."