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Lone Star is weighing options for Stark Group: Bloomberg
Posted on Friday, 06 November 2020 14:25
Lone Star Funds is exploring strategic alternatives for Denmark-based building-materials manufacturer Stark Group in a deal that could be worth EUR 2.50 billion, people familiar with the matter told Bloomberg. According to sources, the US-based private equity firm is working with Lazard to consider options for the company. Deliberations are ongoing and no final decisions have been made at this time, the insiders said, asking not to be identified as the situation is still private. A representative for Lazard did not respond to Bloomberg’s requests, while Lone Star and Shark declined to comment. Stark sells and distributes building materials to tradespeople in northern Europe, with 10,000 employees in more than 400 branches, according to its website. Lone Star paid EUR 1.03 billion for the company from UK-based Ferguson in 2018. The global lockdowns due to the coronavirus have hit construction companies as many projects were halted. Lone Star has organized 21 private equity funds with aggregate capital commitments totalling more than USD 85.00 billion. Zephyr, the M&A database published by Bureau van Dijk, shows there were 62 deals worth USD 4.76 billion targeting building material and supplies dealers announced worldwide in 2020 to date. Value is already up on the full 12 months of 2019, despite the decline by volume as 138 transactions at USD 3.32 billion. In the largest of these, Nitori Holdings has agreed to acquire Japan’s Shimachu for JPY 214.25 billion (USD 2.06 billion). Other targets included US-based Home Depot, Norway’s Carlsen Fritzoe Handel and Swedish businesses BHG Group and Bygghemma Group First. © Zephus Ltd