Saint-Gobain has signed a binding agreement to divest all of its merchanting brands in the UK, to Stark group.
As per the terms of the deal, STARK Group will acquire and operate Saint Gobain Building Distribution Ltd, which features Jewson, the general builders’ merchant, local brands Gibbs & Dandy and JP Corry in Northern Ireland, the specialist brands Jewson Civil Frazer and Minster, besides International Timber.
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These assets are expected to generate revenues of around €2.7bn this year with an operating margin of around 2%.
With an enterprise value of £740m, the sale comprises 600 outlets and employ 8,900 people.
This deal is expected to be completed in the first quarter of 2023 and not subject to any external conditions.
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Following the completion of the deal, Saint-Gobain will no longer have any distribution businesses in the UK.
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By GlobalDataIt follows the divestment of specialist distribution brands in the UK over the past 18 months representing approximately €650m of revenues, based on an enterprise value of around €200m.
These divestments are part of Saint-Gobain’s business profile optimisation strategy.
The acquisition of Saint-Gobain Building Distribution Ltd is Stark Group’s 18th acquisition since CVC Capital Partners Fund VII gained its ownership in May 2021.
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Image: This deal is expected to be completed in the first quarter of 2023. Credit: Danist Soh on Unsplash.
