Strategic Expansion into Nordic Technical Trade
Finnish retail conglomerate Kesko has announced a definitive agreement to acquire the Swedish, Norwegian, and Danish operations of technical trade operator Dahl from French industrial group Saint-Gobain. The transaction, valued at €1.20 billion ($1.38 billion) on a debt-free basis, represents the largest acquisition in Kesko’s history and signals a significant shift in the company’s regional market positioning.
The acquisition focuses on heating, piping, air conditioning, and infrastructure construction services. Upon completion, the deal is expected to elevate the technical trade segment to Kesko’s largest division, with group-wide international sales projected to increase from 22% to 33% of total net sales.
Financial Breakdown and Operational Scope
The businesses being acquired posted combined net sales of €2.06 billion in 2025. The geographical distribution of these sales highlights a strong presence in Sweden (€922 million), followed by Norway (€614 million) and Denmark (€533 million). The operation currently manages approximately 190 stores and three automated central warehouses, employing roughly 2,700 people.
Key operational metrics for the acquired business include:
- Business Model: 100% B2B, with 88% of total group sales expected to be B2B post-integration.
- Digital Integration: Approximately 35% of current sales are generated through digital channels.
- Market Mix: Nearly 50% of revenue is derived from renovation projects, while infrastructure construction accounts for approximately one-third.
Financing and Long-term Outlook
Kesko intends to fund the purchase initially via bridge financing provided by Danske Bank and Nordea Bank. Long-term refinancing plans involve a mix of debt and equity, with the company anticipating a share issue of between €500 million and €700 million.
Jorma Rauhala, President and CEO of Kesko, noted that the deal aligns with the company’s long-term growth strategy. “Once completed, the acquisition would make building and technical trade Kesko’s biggest division,” Rauhala stated, adding that the firm is targeting group net sales of approximately €20 billion by the early 2030s.
Saint-Gobain’s CEO, Benoit Bazin, highlighted that the transaction strengthens the strategic partnership between the two companies, noting that the Dahl brands—Dahl in Sweden and Brødrene Dahl in Norway and Denmark—will continue to operate as separate business units following the integration.
The transaction remains subject to customary regulatory approvals, including competition authority oversight, with an expected completion date by early 2027.
