National builders merchant chain Jewson is poised to increase massively in size following the announcement of a £145m deal by owner Saint-Gobain to buy Wolseley’s 148-branch Build Center business.

The deal, which requires competition clearance, is expected to see most of the Build Center branches rebranded as Jewson, which currently has more than 500 outlets itself.

Timber Trade Federation chief executive John White said the acquisition would increase the Saint-Gobain Building Distribution influence on the market and “provide stiffer competition for the other merchants”.

“It’s good for the UK merchant market because it takes one player out of the market,” said Fraser Steele, managing director of Glenalmond Timber.

“It’s one less competitor. I do not think it will have a large difference to companies in the timber supply chain.”

Another timber trader said that the acquisition was predictable.

“There’s been talk of further consolidation between the major players for some time, but decisions were shelved during the downturn,” he said. “Now the time seems to be right to put these plans back on the table; recently we saw Travis Perkins buy BSS. Maybe that spurred Saint-Gobain to make its move on Build Center.”

He said Build Center was a smaller timber player, with purchases probably around 20% those of Jewson and TP.

Saint-Gobain CEO Pierre-André de Chalendar said the Build Center acquisition would further develop the group’s building distribution sector and complement its geographical presence, creating “significant synergies” in purchasing and logistics.

It is not clear yet what the ramifications will be for timber supply arrangements for Build Center but Jewson Internal Timber Supply currently supplies timber to the Jewson branch network.

Build Center, which has 1,500 staff, does also have 12 specialist Timber Centres offering products ranging from roof trusses, joinery services, timber treatment and machining. And its recent “Good for Wood” marketing campaign is focused on raising awareness of its timber offer.

Chief executive Ian Meakins said Wolseley would focus on its core markets, “including building products and wood solutions in France and plumbing, heating, pipe, climate and associated businesses in the UK”.

In the 11 months to June 30, Build Center’s revenue was £294m and trading profits £4m. Net assets at sale completion are estimated at £136m.