The acquisition of Saint-Gobain Building Distribution UK Ltd by the Stark Group has been completed early following an accelerated process.
When announcing the acquisition on 12 December 2022, the parties planned for a closing date later this year. The separation from former owner Saint-Gobain UK of more than 600 dedicated builders’ merchant, specialist, and distribution branches and a major timber importer and distributor has been completed.
The company also announced a change at the top of the organisation, with current Saint-Gobain Building Distribution UK CEO Mike Newnham being replaced by John Carter as head of the newly acquired group.
Group CEO Søren P. Olesen said: ”We are very pleased to have completed this acquisition in great time, having announced the deal in mid-December. We look very much forward to welcoming nearly 9,000 colleagues and many new tradespeople to our customer list in the UK.
”We have a strategy that successfully focuses on professional tradespeople and the renovation and maintenance market. The UK is an attractive market with solid population growth, one of Europe’s oldest housing stocks, and a huge potential for energy renovations.”
“We are facing a challenging transition year, but we have acquired a 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 customers, the employees, and the distribution. We have acquired a company with whom we can continue our growth journey. ”
The acquisition takes Stark Group’s total pro forma annual net sales to around €9 billion. The combined company has more than 20,000 employees and approximately 1,150 dedicated builders’ merchants, specialists, and distribution centres. Stark Group is a leading retailer and distributor of heavy building materials across Europe and operates in the Nordics, Germany, Austria and now the UK.
Stark Group in the UK will be known as Stark Building Materials UK Ltd. The company 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.
A spokesperson for Saint-Gobain said: “We’re pleased to have successfully and efficiently completed the divestment of Saint-Gobain Building Distribution and International Timber to Stark Group. We wish our former colleagues and Stark Group every success for the future. With this divestment Saint-Gobain no longer has any distribution businesses in the UK”.
Nadine Matthews, MD of Jewson, said: “Our priority as a business is to develop strategic industry partnerships that benefit our customers, suppliers and colleagues – and we believe that’s exactly what we’ll be able to deliver now that we are part of the Stark Group.
“As a leading distributor of building materials across Europe, Stark Group, like Jewson, is a customer-first business that is completely focussed on meeting the needs of all our customers from builders and tradespeople, through to our relationships with National housebuilders and our offering through Jewson Partnership Solutions for our social housing customers. Our businesses are united by the same values, and by working together, we know we can develop the very best offering available on the market.
“We have a clear and consistent strategy for growth, which Stark has demonstrated true belief in, and we now have an opportunity to learn from their successful experience across Europe to build even further on our plans. Stark has a tremendous track record in helping businesses reach their full potential, and we’re excited to see the positive impact this will have on our customers, suppliers and colleagues – the people who are critical to our success.
“While this is a significant moment in Jewson’s history, those we work with daily won’t notice any immediate change to our operations. It’s very much business as usual and we will continue to trade as normal to ensure our customers can keep on delivering for their own customers and projects.
“We see the Stark Group and Jewson as kindred spirits, and the future looks very bright.”
Paul Martin, MD of International Timber, said: “Stark Group is a leading distributor of building materials across Europe and their business will bring their experience of successful growth.
“They have a culture of sharing best practice and will be supporting our plans to deliver the solutions, services and great experience that will help customers grow and make their life easier. So it’s great for our customers and for our suppliers who are also a critical part of our success.
“Customers won’t notice any immediate change, as it’s very much business as usual and we will continue to trade as normal for customers.
“Over time we will be working closely with Stark , sharing and building on our great plans for our customers. We have a lot of opportunities now to share best practice with Stark and learn from their business and operations elsewhere in Europe.
“They have a tremendous track record of growth and delivering a great experience to their customers. We’ll be spending time seeing in what ways we can learn from this experience to support our local customers.”
