Global hardwood giant DLH is selling its Danish merchanting division in order to focus on its core International Timber trading business.
DLH expects to generate proceeds of DKK600m by selling the 19 merchant branches in its building materials division to Saint-Gobain Distribution Nordic AS.
The transaction is subject to due diligence and competition authority approval and is scheduled for completion in the first quarter of 2008.
DLH said selling the division would reduce its dependency on the Danish market.
The group is also intending to improve its financial and strategic potential by expanding its geographical sales platform, strengthening sourcing capacity via its own forestry and sawmilling operations, expanding processing capacity, plus beefing up sales and distribution capacity by acquisitions and bolstering its “leading position as a supplier of sustainable products”.
