Saint-Gobain has signed an agreement to sell its remaining distribution business in the UK Saint-Gobain Building Distribution Limited (SGBD Ltd), to The Stark Group for £740million (€850million).

The transaction is the Northern European distributor’s largest acquisition to date and comprises more than 600 branches and distribution centres in the UK.

It includes builders’ merchant Jewson, as well as local brands such as Gibbs & Dandy and JP Corry in Northern Ireland.

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Distributor of heavy building materials, the Stark Group has doubled net sales through organic growth and acquisitions since 2019, when the Group acquired Saint-Gobain’s German distribution business.

At that time, the company almost doubled in size as well, from €2.3 billion to €4.1 billion.

Stark Group has net sales of approximately €6 billion, serves 10,000 suppliers and 275,000 customers from 550 locations.

Headquartered in Denmark, Stark Goup has around 12,500 employees in Germany, Austria, Denmark, Sweden, Finland, and Norway.

Group CEO Søren P. Olesen said:“We have a strategy that successfully focuses on professional craftsmen and the renovation and maintenance market, which this acquisition fits very well into. I

“n 2019, we bought Saint-Gobain’s German distribution business, and there are many similarities in this acquisition. We will do our utmost to develop, grow and invest in the company making it the professional craftsmen’s preferred choice.”

“Despite the current tough macro-economic environment, the fundamental drivers for the renovation and maintenance market in the UK are attractive.

“We are facing a challenging transition year, but it is a solid company that we can make thrive and grow.

“The more than 600 branches and distribution centres are in good locations across the entire UK.

“We will invest in the business, the people, and the distribution. We have acquired a company with whom we can continue our growth journey.”

SGBD Ltd generated revenues of £2.3 billion in 2021 and the transaction is expected to be complete by the end of the first quarter 2023.

Saint-Gobain’s reported its decision to sell SGBD is part of its desire to re-shape its business portfolio.

It follows a series of divestments of businesses, including exiting bathroom, plumbing and heating distribution, with the sale of Ideal Bathrooms and Neville Lumb, and most recently the sale of International Decorative Surfaces.

All of which is part of Saint-Gobain’s portfolio optimisation strategy to enhance the group’s growth and profitability profile in line with its “Grow & Impact” plan.