STARK Group welcomes CVC Capital Partners Fund VII as its new investor
CVC Capital Partners Fund VII has signed an agreement to acquire 100% of STARK Group, a leading distributor of heavy building materials in Northern Europe.
STARK Group has grown rapidly in recent years through successful acquisitions and organic growth with a strategic focus on being a trusted partner bringing scale benefits to professional craftsmen. The company has been owned by an affiliate of Lone Star Funds since April 2018.
Headquartered in Denmark, STARK Group is a leading B2B distributor of heavy building materials for the construction industry in the Nordics and Germany, with a focus on serving professional craftsmen. The business partners with 10,000 suppliers to serve c. 235,000 customers from more than 400 locations in Denmark (incl. Greenland), Sweden, Norway, Finland, and Germany. STARK Group generated pro forma net sales of EUR 4.5 billion and adjusted EBITDA of EUR 241 million in the financial year ended 31 July 2020.
“We are excited to partner with CVC to continue the journey we started together with Lone Star. We have enjoyed this collaboration, which has been instrumental in supporting us to achieve strong growth over recent years.” says Søren P. Olesen, CEO, STARK Group. “We continue to see plenty of opportunities for further development and expansion both in respect of further organic growth and through accretive bolt-on acquisitions in the attractive markets in which we operate. We know CVC very well from the past and look forward to benefitting from their industry expertise, strategic insights and appetite to play an active role in future market consolidation. I could not imagine a better owner to support STARK Group going forward.”
Christoffer Sjøqvist, Senior Managing Director at CVC, adds: “We have followed STARK Group closely for many years and have been impressed with the quality of the business and its people. We are delighted to be supporting the company going forward and look forward to working closely with Søren P. Olesen and his team to continue to grow STARK Group.”
The transaction is subject to customary conditions and approvals and is expected to close in Q2 2021. Legal and financial terms have not been disclosed.
STARK Group and Lone Star Funds were advised by Lazard. CVC was advised by Nordea and Rothschild & Co.
Upon completion, Søren Vestergaard-Poulsen, Managing Partner at CVC, will join the board of STARK Group as Chairman. Christoffer Sjøqvist will also join the board.
About STARK Group:
STARK Group is a leading business-to-business distributor of heavy building materials for the construction industry in the Nordics and Germany, with a strategic focus on serving the professional craftsmen.
STARK Group serves approx. 10,000 suppliers and 235,000 customers from 422 locations. Headquartered in Denmark, STARK Group has 10,000 employees in Denmark (incl. Greenland), Sweden, Norway, Finland, and Germany. The Group has doubled in size over the last couple of years through acquisitions and organic growth, and today, it holds a leading national or regional position in all markets.
About Lone Star:
Lone Star, founded in 1995 by John Grayken, is a leading private equity firm advising funds that invest globally. Lone Star considers a broad scope of markets, industries, and opportunities through equity and debt investments in value-oriented assets, real estate and real estate-related assets, control investments in operating companies, and securitized products. Since the establishment of its first fund in 1995, Lone Star has organized 21 private equity funds with aggregate capital commitments totalling more than $85 billion.
About CVC Capital Partners:
CVC is a leading private equity and investment advisory firm. Founded in 1981, CVC today has a network of 23 offices and over 550 employees throughout Europe, Asia and the US. To date, CVC has secured commitments of over in excess of US$160 billion from some of the world's leading institutional investors across its private equity and credit strategies. In total, CVC currently manages approximately US$109 billion of assets. Today, funds managed or advised by CVC are invested in over 80 companies worldwide, employing over 400,000 people in numerous countries. Together, these companies have combined annual sales of approximately US$93 billion. For further information about CVC please visit www.cvc.com.