A BOLTON businessman who started his building supplies company 20 years ago with £80 in his pocket and 20 tons of topsoil has sold it in a multi-million pound deal.

Castle Builders Merchants, of Radcliffe Road, Little Lever, and owned by Nick Howcroft, has been acquired for an undisclosed sum by Irish building supplies and distribution company Grafton Group (UK) plc, in a deal which will see the company continue to trade autonomously until 2006.

The deal was orchestrated by Cowgill Holloway, in Chorley New Road, Bolton. Ian Johnson, corporate finance partner, said: "We alerted Castle to the fact that this is currently a very active market. The major players are highly acquisitive, as they are all looking to gain territory. We brought this to the shareholders' attention and negotiated the transaction on their behalf."

Castle was formed by Mr Howcroft in 1984. Mr Howcroft, who was then 17 years old, began as a sole trader. But increasing trade in concrete flags with local landscape gardeners saw turnover in the first year reach £30,000. This year, the company - which now employs 40 people - will see a profit on a turnover of £5 million.

Mr Howcroft expanded the company nine years ago, buying a second site in Crewe. "I didn't have a vision to start with," he said. "Success has been down to hard work and a loyal team. Some employees have been here for 20 years."

The company also capitalised on the market for bricks, by holding 300 different lines, as opposed to many builders merchants, which carry about 30. Using six lorries, Castle moves more than 500 tons of building material through its gates every day.

Grafton Group divisional director Stephen Thompstone said: "We are delighted that Castle Builders Merchants has joined the Grafton Group and we are looking forward to working with them in the future as part of our expansion plans in the North-west."

Grafton's 2004 figures show that in the six months to September 8, operating profit before goodwill and property profit increased by 31 per cent to £47.5 million. Sales were up 29 per cent to £619.7million.