Saint-Gobain has signed a £740m deal to sell Saint-Gobain Building Distribution Ltd to Stark Group.
The acquired business includes 600 Jewson branches and distribution centres, together with Gibbs & Dandy (28 branches across England), JP Corry in Northern Ireland, and Jewson Civils specialist brands Frazer, Minster and International Timber. Together they have a turnover of £2.3 billion a year and employ 8,900 people.
Jewson, founded in 1836, had been owned by Saint-Gobain since 2000. The sale is the culmination of an 18-month withdrawal of Compagnie de Saint-Gobain from Britain. Saint-Gobain chose Stark after a competitive sales process.
Stark Group A/S, has its head office in Copenhagen and has operations in Scandinavia, Germany and Austria, within the retail trade and distribution of heavy construction materials to the trade. With this acquisition, Stark’s annual turnover will be around £7.75 billion.
Stark Group is owned by the private equity company CVC Capital Partners.
In 2019, Stark acquired Saint-Gobain’s German distribution business and has since doubled net sales through organic growth and acquisitions.
CEO Søren Olesen of Stark Group said: “We have a strategy that successfully focuses on professional craftsmen and the renovation and maintenance market, which this acquisition fits very well. In 2019, we acquired 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 tradesman’s choice of choice in the UK. We have acquired a business with which we can continue our growth journey.”
“Despite the current tough macroeconomic environment, the fundamental drivers of the renovation and maintenance market in the UK with its high demand for energy renovation in the coming decades are attractive. We are on a strong growth trajectory, at the core of which is being a good citizen, we value all our existing employees and are proud of our contribution to reducing emissions.”
Jewson managing director Nadine Matthews, who moved over from Jewson Civils Frazer in May this year, said: “Saint-Gobain is a big business and under Saint-Gobain’s ownership, Jewson has developed its offering to customers a huge amount. We are delighted to embark on the next phase of our journey under the new ownership of the Stark Group.
“We are transforming how we serve our local builders and trade customers from our nationwide Jewson network in line with our commitment to providing a market-leading and hassle-free customer experience. Similarly, 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 offering to help social housing customers provide people with efficient, high-quality homes.
“Our unique Build Aviator end-to-end estimating and project management service takes the hassle out of our customers and our digital transformation is well under way. With Stark Group’s backing and support, and with more than 6,200 brilliant colleagues in our Jewson family, we are confident of the huge opportunities in the construction market in the years to come.”