Saint-Gobain will sell its merchanting brands in the United Kingdom to the Stark group.
Following a competitive sale process, Saint-Gobain has signed a binding agreement for the sale of all its merchanting brands in the UK – 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 (approximately €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 UK.
It follows the divestment of specialist distribution brands in the UK 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 optimisation strategy to enhance the group’s growth and profitability in line with its ‘Grow & Impact’ plan.