Compagnie de Saint-Gobain SA (SGO.FR) said Monday that it has reached an agreement to sell its entire stake in Saint-Gobain Building Distribution Deutschland to the Stark Group, a Nordic building materials company.
Following the acquisition, Stark Group will significantly expand its footprint in the builders’ merchant industry in Northern Europe. SGBDD is well positioned to capture further market share in the large German construction market with consistent demand, which has shown resiliency through economic downturns.
The sale is based on an enterprise value of 335 million euros ($373.7 million) for SGBDD, the French construction materials group said.
Saint-Gobain said it expects the divestment to be completed in the second half of 2019 pending approval from European antitrust authorities.
SGBDD generated revenue of EUR1.9 billion in 2018, Saint-Gobain said. It is mainly known for its Raab Karcher brand and has 220 sales outlets employing roughly 5,000 people, it said.
