Danish group enters UK builders merchant market with acquisition of Jewson and International Timber16 December 2022
Denmark’s Stark Group A/S has signed a £740m agreement to acquire Saint-Gobain Building Distribution Ltd – including builders merchant giant Jewson – which operates more than 600 branches and distribution centres in the UK.
The transaction comprises Jewson, 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 £2.3bn, taking STARK Group’s total pro forma annual net sales to around €9bn.
Stark Group acquired Saint-Gobain’s German distribution business in 2019.
“Despite the current tough macro-economic environment, the fundamental drivers for the renovation and maintenance market in the UK are attractive,” said Group CEO Soren P. Olesen.
“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.”
The acquisition is expected to complete 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. It has net sales of approximately €6bn and serves around 10,000 suppliers and 275,000 customers from its 550 locations.