Kesko lands $1.7B Nordic deal as Saint-Gobain sells Dahl operations

Finnish retail and trade company Kesko has entered into a deal with Saint-Gobain to purchase Saint-Gobain's Dahl business in Sweden, Norway, and Denmark for about $1.7 billion (1.5 billion).

The deal is Kesko's biggest acquisition ever, significantly increasing the company's stake in the Nordic building products distribution sector.

Bloomberg reports that the Dahl and Brdrene Dahl companies purchase will see both businesses combine to supply professional customers with plumbing, heating, ventilation, air conditioning and infrastructure related products.

In 2025, both businesses together made net sales of 2.07 billion and reported EBITDA of 146 million, together the businesses employ about 2,700 people and have about 190 retail locations across Scandinavia.

Major Nordic Expansion

The Kesko Dahl purchase adds one of the biggest technical trade distribution networks in the region to Kesko's arsenal. The acquired businesses accounted for sales of approximately 922 million in Sweden last year, followed by sales in Norway of 614 million and 533 million in Denmark.

Kesko says that the value of the transaction (excluding debt) is 1.2 billion. With lease liabilities it is 1.518 billion. This deal needs regulatory approval and has to be discussed with employees but is planned to complete during the first half of 2027.

Exposure to infrastructure and renovation

Kesko will increase its exposure to Northern Europe's infrastructure and renovation spending as a result of this purchase. Approximately half of Dahl's revenue comes from renovation-related work, according to the company. Infrastructure projects make up about a third of total sales.

Professional contractors, builders and fitters make up the majority of this business's customer base. Approximately 35 percent of its revenue comes from the company's digital sales channels.

Saint-Gobain narrows down its portfolio

The acquisition is part of Saint-Gobain's plan to restructure its distribution network, focusing its capital investment on its core operations. The French building materials company has made several divestments in the Nordic countries during the past year including several distribution operations in Scandinavia.

Kesko reported group net sales of 12.48 billion for 2025. Following the acquisition's completion it is expected to improve Kesko's building and technical trade division, which makes up a significant proportion of group revenue and is represented across Finland, Sweden, Norway, Denmark, Poland and the Baltic states.

The Kesko Dahl acquisition is one of the biggest distribution deals signed in Europe so far in 2026 and shows the continuing consolidation of the building product and infrastructure market.

Source: Bloomberg

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