In a £740 million transaction, Saint-Gobain SA has sold 600 branches and distribution centres to the Stark Group.

The parties have signed an agreement that will see Stark Group, which is headquartered in Copenhagen and has operations in nordic countries, Germany, and Austria, acquire and operate Saint-Gobain Building Distribution Ltd, which includes Jewson, Gibbs & Dandy, JP Corry in Northern Ireland, the specialist brands Jewson Civil Frazer, and Minster, as well as International Timber. They comprise 600 outlets and employ 8,900 people.

The transaction is based on an enterprise value of £740 million, with the acquired business expected to generate net sales of around £2.3 billion in 2022 with an operating margin of around 2%.

Once the deal is completed, which is expected to happen in spring 2023, Saint-Gobain will no longer have any distribution businesses in the United Kingdom. This is the culmination of an 18 months divestment programme that saw the French company shed its specialist distribution brands in the UK.

Stark Group is among Europe’s fastest-growing retailers and distributors of building materials, achieving annual pro forma net sales of around €9 billion (£7.75 billion), once the new acquisition is included.

In 2019, Sark Group acquired Saint-Gobain’s German distribution business, which included brands such as Raab Karcher, Melle Gallhöfer, Keramundo, and Muffenrohr. 

Group CEO Søren P. Olesen said: “We have a strategy that successfully focuses on professional craftsmen and the renovation 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 behind the company making it the professional craftsmen’s preferred choice in the UK. We have acquired a business with whom we can continue our growth journey.

“Despite the current tough macro-economic environment, the fundamental drivers for the renovation and maintenance market in the UK with its large need for energy renovation in the coming decades are attractive.

“We are on a strong growth trajectory, at the heart of which is being a good corporate citizen, we value all of our existing employees and are proud of our contributions to bringing down emissions.”

Mike Newnham, CEO Saint-Gobain Building Distribution UK, commented: “Saint-Gobain is a great business and our distribution businesses are proud to have been part of the Group for more than 20 years. We’re now delighted to be joining The Sark Group and entering a new chapter of growth for our businesses and our 8,900 dedicated colleagues.

“We’ll continue to focus on developing our services and solutions and delivering a great customer experience right across our brands to the 100,000’s of customers who rely on us each week to deliver their projects. Looking forward the construction industry has a very important role to play helping customers to decarbonise homes and renovate homes, and build good quality buildings and infrastructure for the future.”

Nadine Matthews, Managing Director of Jewson, added: “Saint-Gobain is a great business and under Saint-Gobain’s ownership Jewson has developed its offer for customers a huge amount. We’re delighted to be embarking on the next phase of our journey under the new ownership of The Stark Group.

“We’re transforming how we serve our local builders and trade customers from our nationwide Jewson network in line with our commitment to provide a market leading and hassle free customer experience. Equally for National housebuilders we have a growing network of strategically located supply chain hubs that support these customers with the increasingly sustainable solutions they need. Our Jewson Partnership Solutions brand is innovating its offer to help social housing customers provide people with high quality, efficient homes.

“Our unique Build Aviator end to end estimating and project management service is taking hassle away for customers and our digital transformation is well underway. With The Stark Group’s support and backing, and with more than 6,200 brilliant colleagues in our Jewson family, we’re confident about the tremendous opportunities in the construction market in the years ahead.”