Kesko further strengthens its Byggmakker chain in Norway – acquires Gipling AS
Kesko Corporation's subsidiary Byggmakker Handel AS has agreed to purchase Gipling AS, a Norwegian operator in the building and home improvement trade with net sales of approximately €151 million in 2017. With the acquisition of Skattum Handel AS, announced on 7 June, the Byggmakker chain will now have control over 30 Byggmakker stores, providing even greater potential for growth and increased profitability in Norway.
K Group’s building and technical trade division operates in eight countries. Byggmakker is one of the leading operators in the building and home improvement trade in Norway. Byggmakker Handel AS is now strengthening its operations by acquiring the largest Byggmakker retailer Gipling AS. The acquisition follows the recent acquisition of the second largest Byggmakker retailer Skattum Handel AS, announced on 7 June.
Gipling AS operates 19 Byggmakker stores and employs some 540 professionals around the Trondheim area. In 2017, the company made €5.5 million in operating profit.
“We have now acquired the two largest Byggmakker retailers to secure significant volume for the Byggmakker chain in Norway. The acquisitions of both Skattum Handel and now Gipling strengthen our possibilities for further growth and profitability in Northern Europe. The transaction price of the acquired companies, including financial liabilities, is some €147 million. In 2017, the companies’ combined net sales totalled €245 million and EBITDA €11.5 million,” says Jorma Rauhala, President of Kesko’s building and technical trade division and deputy to Kesko's President and CEO.
In the building and technical trade, Kesko’s strategic objective is to strengthen its market position in Northern Europe and improve profitability in all operating countries. In Norway, the division operates 25 Onninen stores and 65 Byggmakker stores, of which 35 will operate under the retailer business model and 30 will be operated by the Byggmakker chain following the transaction.
Gipling AS, headquartered in Steinkjer, operates Byggmakker stores in the counties of Nordland, Nord-Trøndelag, Sør-Trøndelag and Hedmark.
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.
Further information:
Jorma Rauhala, Deputy to President and CEO of Kesko Corporation, President of the building and technical trade division, tel. +358 105 322 211, jorma.rauhala@kesko.fi
Jessica Diktonius, Vice President, Communications, K Group's building and technical trade, +358 40 709 9176, jessica.diktonius@kesko.fi
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