Danish Stark Group A/S has signed an agreement to acquire Saint-Gobain Building Distribution Ltd, which operates more than 600 branches and distribution centres in the UK.
The transaction comprises some of the UK’s leading brands in retail and distribution of building materials to professional craftsmen. These include the builders’ merchant Jewson, strong local brands such as Gibbs & Dandy and JP Corry in Northern Ireland, specialist brands Jewson Civils Frazer and Minster, as well as International Timber.
The acquired business is expected to generate net sales of around GBP 2.3 billion (Euro 2.7 billion) in 2022, taking Stark Group’s total pro forma annual net sales to around Euro 9 billion.
Stark Group has doubled net sales through organic growth and acquisitions since 2019 when the Group acquired Saint-Gobain’s German distribution business. At that time, the company almost doubled in size as well, from Euro 2.3 billion to Euro 4.1 billion.
The acquisition of Saint-Gobain Building Distribution Ltd is based on an enterprise value of GBP 740 million (Euro 850 million) and is Stark Group’s largest acquisition to date.
The seller, Compagnie de Saint-Gobain SA, is among the world’s leading manufacturers of materials and services for renovation, light construction and the decarbonization of construction and industry. It only has distribution in select markets. Retail and distribution of heavy building materials is Stark Group’s core business.
The transaction is expected to close in the spring of 2023.
Stark Group is a leading business-to-business distributor of heavy building materials for the construction industry in Northern Europe, with a strategic focus on serving professional craftsmen.
