XL-BYGG Östergyllen acquired by Fresks

Having secured investment from Litorina earlier this year, Fresks is expanding through the acquisition of XL-BYGG Östergyllen, the leading building materials supplier in Östergötland, Sweden. Livingstone’s Consumer sector team advised the shareholders of Östergyllen on the sale of the business to Fresks.< XL-BYGG Östergyllen, founded in 1949, is a building materials supplier focused on serving regional and local construction firms around Östergötland, to the south of Stockholm. Mattias Fahlén and Richard Johansson acquired the company in 2007, increasing turnover from some SEK 40m to SEK 330m and expanding the business from one to six outlets. Fresks is a leading Swedish builders merchants chain in Northern Sweden, selling high quality building materials to primarily small and mid-sized professionals, in addition to offering product ordering and installations services both online and throughout their 12 stores. With excellent synergies and significant growth potential the acquisition will drive an increase inthe profitability over the next few years. The owners of Östergyllen will remain with the business going forward, having re-invested equity from the sale into Fresks. Mattias Fahlén, CEO at XL-BYGG Östergyllen, commented:  “With a great concept and clear client focus, we are very excited at the prospect of being able to grow and improve as part of Fresks.”

Henrik Widlund, Director at Livingstone, said: “We’ve had a close and rewarding relationship with the owners of Östergyllen, evaluating a number of potential acquirers for the business. Fresks’ acquisition of the company ensures the owners have the opportunity to grow and develop the business further, under the Fresks’ umbrella.”

Thomas Karlsson, Partner at Livingstone, concluded: “Livingstone continues to achieve great success across the Consumer Products and Retail sectors. This is the Stockholm team’s third transaction in recent months, following on from Felleskjøpet’s acquisition of Granngården and Ratos’ acquisition of Gudrun Sjödén Group AB.”

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