Saint-Gobain has signed an agreement to divest distribution resources through the sale of all merchanting brands, including Jewson, to the Stark group
Saint-Gobain has announced that it will divest all its merchanting brands in the United Kingdom – including the builders and timber merchant Jewson – to the STARK group.
The transaction is expected to be completed in the first quarter of 2023 and is not subject to any external conditions.
The move sees Saint-Gobain ceasing all distribution businesses in the UK
The divested assets are expected to generate revenues of around €2.7bn in 2022 with
an operating margin of around 2%.
These include the builders’ merchant Jewson, Northen Ireland brands such as Gibbs & Dandy and JP Corry, specialist brands Jewson Civils Frazer and Minster, as well as International Timber.
They comprise 600 outlets and employ 8,900 people. The divestment is based on an enterprise value of £740m, i.e. around €850m.
It follows the divestment of specialist distribution brands in the United Kingdom over the
last 18 months representing around €650m of revenues.
Saint-Gobain has identified these divestments as part of their business profile optimisation strategy, in line with its “Grow & Impact” plan.
The Saint-Gobain divestment sees the STARK Group expand further into the UK market
STARK Group has doubled net sales through organic growth and acquisitions since 2019 when the Group acquired Saint-Gobain’s German distribution business. The move saw the company double in size, from €2.3bn to €4.1bn.
STARK Group CEO Søren P. Olesen commented:
“We have a strategy that successfully focuses on professional craftsmen and the renovation and maintenance market, which this acquisition fits very well into. In 2019, we bought Saint-Gobain’s German distribution business, and there are many similarities in this acquisition. We will do our utmost to develop, grow and invest in the company making it the professional craftsmen’s preferred choice.”
“Despite the current tough macro-economic environment, the fundamental drivers for the renovation and maintenance market in the UK are attractive. We are facing a challenging transition year, but it is a solid company that we can make thrive and grow.
“The more than 600 branches and distribution centres are in good locations across the entire UK. We will invest in the business, the people, and the distribution. We have acquired a company with whom we can continue our growth journey.”
