Saint-Gobain has announced that they have signed a binding agreement which will see them sell builders merchants Jewson to the Stark Group. This is a statement published by Saint-Gobain in mid-December:
Following a competitive sale process, Saint-Gobain has signed a binding agreement for the sale of all its merchanting brands in the United Kingdom – including the builders and timber merchant Jewson – to the Stark group.
The divested assets are expected to generate revenues of around €2.7 billion in 2022 with an operating margin of around 2%. They comprise 600 outlets and employ 8,900 people. The divestment is based on an enterprise value of £740 million, i.e. around €850 million.
This transaction is expected to be completed in the first quarter of 2023 and is not subject to any external conditions. Saint-Gobain will then no longer have any distribution businesses in the United Kingdom.
It follows the divestment of specialist distribution brands in the United Kingdom over the last 18 months representing around €650 million of revenues at around breakeven in terms of operating margin, based on an enterprise value of around €200 million.
These divestments are part of Saint-Gobain’s continued business profile optimization strategy to enhance the Group’s growth and profitability in line with its “Grow & Impact” plan.
You can view the original statement here: https://www.saint-gobain.com/sites/saint gobain.com/files/media/document/20221212_UK%20distribution%20divestment_VA.pdf
Jewson has also published a statement on its website:
Saint-Gobain, our parent company, has exchanged binding contracts with The STARK Group to sell all the businesses of Saint-Gobain Building Distribution Ltd (SGBD). This includes Jewson. The sale is expected to be completed in quarter 1 of 2023.
The STARK Group is among Europe’s fastest-growing retailers and distributors and is completely focussed on building materials distribution for the professional builder/tradesperson. They are headquartered in Denmark, with operations in 6 countries in Northern Europe. The STARK Group has a complete focus on building distribution, values that are similar to ours, and like Jewson a strong focus on giving customers a great experience and being a responsible sustainable business.
The STARK Group is investing in SGBD/Jewson to support our plans for growth which are centred around providing a great experience and continuing to evolve our services with our customers’ current and future needs in mind
The planning for this transition is underway and our aim is to make sure that the transition is seamless and smooth for our customers.
There is no change for now. Jewson continues to operate and trade as normal and we remain on hand to support you with all your needs as before – no change.
There is no change at this moment. All order and invoice processes remain the same. Please continue to follow these usual processes as normal. Any changes will be notified to you in advance so that changes can be made in good time.
You can view the original statement here: https://www.jewson.co.uk/jewson-news
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