Kesko: to significantly expand operations in Denmark

Kesko / FI. (kkc) Kesko Group has agreed to acquire three builders’ merchants in Denmark: Roslev Trælasthandel A/S, Tømmergaarden A/S, and CF Petersen + Søn A/S. The combined net sales of the three operators total some EUR 400 million. The acquisitions are part of the execution of Kesko’s growth strategy in Northern Europe, and once completed, will make Kesko’s subsidiary Davidsen a significant nationwide operator in the Danish builders’ merchant market.

«Kesko has a growth strategy: our target is to grow our B2B building and technical trade business in Northern Europe. The Davidsen acquisition was a strategic step for us and provided an entry to the sizable Danish market. These new acquisitions offer Davidsen the possibility to serve their customers nationwide and strengthen our market share in Denmark significantly. We will be in a good position to continue to grow further once the construction cycle turns. The acquisitions are an excellent example of Kesko’s capability to execute its chosen strategy with speed and precision,» says Jorma Rauhala, Kesko’s President and Chief Executive Officer.

Kesko first entered the Danish market by acquiring the builders’ merchant Davidsen Koncernen A/S in January 2024. Davidsen is one of Denmark’s largest building materials retailers, with a market share of 10 percent of the Danish builders’ merchant market and 33 percent of the market in Southern Denmark. Through the acquisitions announced, Davidsen’s market share will rise to some 20 percent in the total Danish market, to some 22 percent in Central and Northern Jutland, and to some 11 percent in Zealand.

Roslev Trælasthandel A/S operates mainly in Central Jutland and focuses on B2B customers. In 2023, the company’s net sales totalled approximately EUR 104 million (DKK 780 million), with an Ebit of EUR 6 million (exclusive IFRS 16 impact). The company holds a market share of approximately 9 percent in Central Jutland. Roslev has four fully-owned stores in Central Jutland and some 150 employees.

Tømmergaarden A/S is a builders’ merchant focusing mainly on B2B customers in Northern and Central Jutland. It has a market share of 11 percent in Northern and Central Jutland. In 2023, the company’s net sales totalled EUR 185 million (DKK 1,370 million), with an Ebit of EUR 8 million (without IFRS 16 impact). The company has 17 fully-owned stores in Northern and Central Jutland and 400 employees.

CF Petersen + Søn A/S focuses on serving B2B customers in Zealand, where it holds a market share of 8 percent. In 2023, the company’s net sales totalled some EUR 113 million (DKK 840 million), with an Ebit of EUR 5 million (exclusive IFRS 16 impact). CF Petersen + Søn counts 5 stores in Zealand and 210 employees.

Roslev Trælasthandel, Tømmergaarden and C. F. Petersen + Søn are currently privately held businesses and part of the XL Byg chain. All three builders’ merchants will be acquired in full by Kesko’s subsidiary Davidsen, of which Kesko owns 90 percent while the Davidsen family owns the remaining 10 percent.

The completion of all three acquisitions is subject to the approval of the competition authorities and the fulfilment of certain other conditions. The transactions are expected to be completed in H1-2025.