Kesko Corporation's subsidiary Byggmakker has agreed to purchase the DIY retail business of Sørbø Trelast AS and Tau & Jørpeland Bygg AS, including two Byggmakker stores and a B2B logistics centre. The businesses included in the transaction had total pro forma sales of approximately €24 million in 2017. With this transaction and the acquisitions of Gipling AS and Skattum Handel AS announced in June, the Byggmakker chain will have control over 32 Byggmakker stores, providing a solid platform for growth and profitability in Norway.
Byggmakker is one of the leading operators in the building and home improvement trade in Norway. Byggmakker is now strengthening its operations by acquiring the DIY business of the Sørbø retailer group. The transaction comprises the Byggmakker Sørbø Trelast store and B2B logistics centre, both located in Stavanger, and the Byggmakker Strand store located in Jørpeland. The house building business is not included in the transaction.
“This transaction is another consistent step in Kesko’s building and technical trade division’s strategy execution in Norway. Prior to this we acquired the two largest Byggmakker retailers, Gipling AS and Skattum Handel AS, and with this announced acquisition we secure our business in southwestern Norway,” says Jorma Rauhala, President of Kesko’s building and technical trade division and deputy to President and CEO.
The Sørbø retailer group employs close to 100 professionals around the Stavanger area. In 2017, the pro forma EBITDA of the operations to be acquired totalled €2.1 million.
In the building and technical trade, Kesko’s strategic objective is to strengthen its profitability and market position in Northern Europe. The division operates in eight countries. In Norway, the division operates 65 Byggmakker stores, of which 33 will operate under the retailer business model and 32 will be operated by the Byggmakker chain following the transaction.
The completion of the acquisition is subject to the approval of the Norwegian competition authorities and the fulfilment of the other terms and conditions of the transaction.
Jorma Rauhala, President of the building and technical trade division, Deputy to President and CEO, tel. +358 105 322 211, email@example.com
Jessica Diktonius, Vice President, Communications, K Group's building and technical trade, tel. +358 40 709 9176, firstname.lastname@example.org
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