After a long period of speculation about a takeover approach, Gibbs & Dandy have confirmed that Jewson and Graham parent company Saint-Gobain Building Distribution (SGBD) have bought the 11-strong chain.
The cash offer, announced last week, is for 425p per share, valuing the company at approximately £43m. The company achieved sales in 2007 of £62.5m and profits of £4.5m.
All 11 branches will continue to trade under the Gibbs & Dandy name to take advantage of the goodwill and brand awareness the business enjoys in its catchment area.
Gibbs & Dandy chairman Christopher Roshier said of the buyout: “We believe that this offer represents an attractive premium [approximately 8.3%] and provides certainty of value for our shareholders. The directors are confident that the Saint-Gobain group will also provide a very attractive opportunity to develop Gibbs & Dandy’s business to the benefit of its employees and customers, providing a robust platform for Gibbs & Dandy for the future.”
SGBD ceo Peter Hindle agreed: “We are delighted to have reached agreement with the board of Gibbs & Dandy,” he said. “The transaction represents a further step in our strategy to broaden our product and geographic reach in the UK. We look forward to working with the Gibbs & Dandy team to realise the potential that exists to grow the business and to share best practice.”
The purchase is the latest in SGBD’s acquisition strategy, which has seen the company make 30 bolt-on acquisitions since the beginning of 2008, three of which have been in the UK.