Saint-Gobain divests its distribution business in the UK

Saint-Gobain divests its distribution business in the UK
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Saint-Gobain Glass

Date: 12 December 2022

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.

600450 Saint-Gobain divests its distribution business in the UK glassonweb.com

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