STARK Group completes major acquisition of Norwegian tile specialist
Through the acquisition of FagFlis Group, Norway’s leading B2B specialist in ceramic tiles and related products, STARK Group secures a crucial building block in their Nordic growth strategy.
Neumann Bygg, the Norwegian subsidiary of STARK Group, is formally the acquirer. The acquisition represents an important strategic milestone and a considerable increase to their Norwegian footprint.
We are very pleased to be able to pass the baton on to STARK Group and Neumann Bygg. Like the FagFlis chain, Neumann’s main focus is on the B2B market. We also see that our values are very similar. We are both companies with a strong and clear culture and a clear objective to be the professional customer’s first choice. At the same time, we want to be the industry’s best employer. With back-up from strong owners and solid competence in both companies, we are sure that we can continue to professionalize our customer offering in FagFlis. Focus on the environment, sustainability and good logistic solutions are areas we look forward to further developing in cooperation with Neumann Bygg.Henrik Stensrud, CEO and founder of the FagFlis Group
About FagFlis Group
FagFlis Group, the leading B2B-supplier of ceramic tiles and related products, consists of 13 fully owned and 12 franchise stores in Norway, in addition to 3 owned stores in Sweden under the name FF Kakel AB. FagFlis Group is a strong brand, dating back to 1996, and its main customer groups are architects, master bricklayers, tilers, construction companies and entrepreneurs. Read more at fagflis.no.
We are impressed over the solid position the FagFlis chain has achieved. A strong and competent management team has delivered good results year after year. The FagFlis chain has a well-run, decentralized operational concept with strong local affiliation and extremely competent employees, who we look forward to getting to know better. This will provide us with the best possible platform for even better common success in the B2B market – two strong concepts which complement each other.Kjell Paulsrud, CEO of Neumann Bygg
About Neumann Bygg
Neumann Bygg is one of Norway's largest building materials distributors - with around 350 employees in 15 large outlets. In 2021, turnover was about Euro 180 million. Neumann primarily caters to professional customers with its wide product range, good logistics solutions and high professional expertise in lumber and building materials for new construction and rehabilitation. Contractors, builders, masons and other craftsmen in small and medium-sized businesses are the majority of Neumann's customers. Read more at Neumann.no
I am grateful that FagFlis has wanted us as new owners. It is an act of trust when families and founders point to us as the new owners of the companies they have been living and breathing to build. An act of trust by which we feel obliged. I am happy to be able to welcome more than 150 new colleagues and franchisees.Søren P. Olesen, CEO of STARK Group
About STARK Group
STARK Group is Northern Europe’s largest distributer of heavy building materials for the construction industry in the Nordics and Germany, with a strategic focus on serving the professional builders. Ceramic tiles and related products are already an important part of the Group’s business in Germany, via the chain Keramundo – and in Sweden via Beijer Bygg. STARK Group is headquartered in Denmark and has approx. 12,500 employees in Germany, Austria, Denmark, Sweden, Finland, and Norway. The Group has doubled in size over the last couple of years through acquisitions and organic growth, and today, it holds a leading national or regional position in all markets. STARK Group is owned by one of the leading global private equity funds, CVC Capital Partners. Read more at starkgroup.dk.
Henrik Stensrud, CEO FagFlis Group, left and Kjell Paulsrud, CEO of Neumann Bygg are both very pleased with the transaction.
We chose Oaklins because of its solid understanding of our business, the building materials industry and the relevant universe of buyers. Through close collaboration and determination, the Oaklins team conveyed the strategic strengths and potential of our business, anticipated and handled the challenges throughout the process and negotiated rewarding terms on our behalf. I must admit that a sales process was more challenging than expected, but with the support of Oaklins, the process was structured and timely, and the result was better than we hoped for. I can genuinely recommend Oaklins to anyone who considers selling their business.Henrik Stensrud, CEO and founder of the FagFlis Group
Oaklins Norway has acted as the exclusive sell-side financial and strategic advisor to the shareholders of FagFlis Group. The team was engaged throughout the entire sale process from the drafting of marketing material and presentations, financial data pack, development of strategic potential buyers list, management presentations, due diligence, negotiations and overall guidance through closing of the transaction.
The Nordic building material sector is subject to intense consolidation. Several large players are strategically positioning themselves to achieve geographic footprint and volume. In addition, these players are moving horizontally to gain volume and vertically to increase share of value creation. STARK Group's acquisition of FagFlis Group is another example of a large player moving horizontally to get a stronghold in an additional product area. We expect to see continued consolidation in all diagonals of the building material sector.Nikolai Lunde, Managing Partner at Oaklins Norway
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