Comprehensive M&A data with integrated detailed company information

Lone Star acquiring Stark from Ferguson
Posted on Friday, 10 November 2017 15:30
Private equity investor Lone Star has agreed to pick up Danish building materials store operator Stark Group.

Under the terms of the transaction, the company will pay EUR 1.03 billion on a debt- and cash-free basis to buy the company from plumbing and heating products distributor Ferguson.

Completion is expected to follow in early 2018, subject to the go ahead from competition authorities.

Ferguson is to retain EUR 150.00 million-worth of property assets related to Stark, which it plans to offload at a later date.

The vendor’s chief executive, John Martin, said the transaction is a positive move for the group and will enable it to effectively respond to its customers’ needs, noting that the firm now plans to focus on its strategy of accelerating profitable growth in its plumbing and heating units.

Stark claims to be the largest retailer and distributor of building materials in the Nordic region and was founded in 1896.

The company has already been involved in one transaction this year, having jettisoned its Silvan chain of DIY stores to Aurelius Equity Opportunities in early September. No financial details of the acquisition were disclosed.

Ferguson is the world’s largest specialist trade distributor of plumbing and heating products to professional contractors in the UK and North America, according to its website.

The company, which was known as Wolseley until July of this year, operates 2,310 international branches and employs 33,000 people.

It notched up revenue of GBP 15.22 billion for the year to 31st July 2017, up 21.3 per cent on the GBP 12.55 billion recorded over the preceding 12 months.

Operating profit for the period totalled GBP 1.22 billion, compared to GBP 711.00 million in the 12 months to the end of July 2016.

© Zephus Ltd