Lone Star buys Stark Group in €1bn deal

The US-based GP acquired the business on a debt-free and cash-free basis. Ferguson, which is listed on the London stock exchange, announced its intention to sell Stark in April 2017.

Transaction costs and other costs are expected to be in the region of €50m, while net assets of the business being disposed are approximately €500m, according to the UK-based plumbing and heating equipment supplier. Ferguson added that it intended to retain around €150m of property assets.

Stark generated ongoing revenues of €2.2bn in the year to 31 July 2017, with a trading profit of €65m.

Lone Star is currently investing from its Lone Star X fund, which launched in October 2016 and held a final close in November 2016 on $5.5bn.

Company
Founded in 1896, Stark is a distributor and retailer of building materials headquartered in Copenhagen. It comprises Stark in Denmark and Greenland, Stark Finland, Beijer Byggmaterial in Sweden and Neumann Bygg in Norway. It employs a staff of 4,585 and operates 180 stores.

People
Ferguson – John Martin (CEO).
Stark Group – Søren P Olesen (CEO).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Buyouts
• Nordics
• Industrials
• Denmark
• Lone Star Funds