STARK Group acquires leading German builders' merchant
STARK GROUP has signed an agreement with Compagnie de Saint Gobain SA, to acquire leading German builders’ merchant Saint Gobain Building Distribution Deutschland GmbH, SGBDD.
SGBDD operates a nationwide network of 220 branches from which approximately 5,000 employees serve a wide range of customers in the renovation and new construction sectors through a flexible delivery model. Through a number of different brands, SGBDD operates in three major business areas, Heavy Building materials, Tiles and Civil Engineering. The company generated total Net sales of EUR 2 billion and EUR 48 million of LTM adjusted EBITDA end of April 2019.
The acquisition has an enterprise value of EUR 335 million and is subject to approval by relevant authorities, expected to be completed in the second half of 2019.
“I am very pleased to announce the acquisition of SGBDD. With this landmark transformation of STARK GROUP, we will enter into the largest building material market in Europe and double our size in a volume-driven business creating significant value for our customers and owners. At the same time, we will strengthen our ability to realise additional scale benefits. The construction industry is highly competitive with low margins, which requires an efficient operation,” says CEO of STARK GROUP, Søren P. Olesen.
Following the acquisition, STARK GROUP will significantly expand its footprint in the builders’ merchant industry in Northern Europe. SGBDD is well-positioned to capture further market share in the large German construction market with consistent demand, which has shown resiliency through economic downturns.
“We have a clear strategy, focused primarily on serving professional customers in the construction and renovation industry. Our core offering is to provide building material at the best price when and where it’s needed while also adding value to our customers' businesses through additional services and advice as well. In that context, economy of scale and local presence are important competitive edges along with in-depth engagement and knowledge about our customers,” says Søren P. Olesen, adding:
“We are very well positioned to bring our experience, competencies, people and proven results into play on the German market. We will do so in close collaboration with the local management and valued employees of SGBDD, who knows their daily operation, customers and partners the best in all the local branches across Germany“
STARK GROUP already operates 186 branches across the Nordics through its subsidiaries STARK Danmark A/S in Denmark and Greenland, Beijer Byggmaterial AB in Sweden, STARK Suomi OY in Finland and Neumann Bygg AS in Norway.