Kesko has agreed to acquire Dahl's operations in Sweden, Norway, and Denmark from French building materials group Saint-Gobain in a deal valued at €1.2 billion, excluding lease commitments. The acquisition, the largest in Kesko's history, would add nearly €2.1 billion in annual revenue and strengthen the retailer's position in one of the Nordic construction market's more resilient segments.

The timing is notable. Kesko's sales grew 3% in May to €1.13 billion, driven largely by building and technical trade. Division sales increased 10%, while technical trade sales rose 9% on a comparable basis. Grocery sales were broadly flat, and car trade sales fell 9%, reinforcing the importance of the division Kesko is now expanding most aggressively.

Dahl is a leading distributor of heating, plumbing, air conditioning, and infrastructure products across Sweden, Norway, and Denmark. The business operates around 190 stores, serves more than 70,000 customers, and generates roughly half of its sales from renovation projects, with another third linked to infrastructure construction.

The acquisition would significantly increase Kesko's international footprint. More than 70% of sales in its building and technical trade division would come from outside Finland, up from 58% today. The company believes long-term demand will be supported by infrastructure investment, urbanization, renovation activity, and the increasing technical complexity of buildings.

The transaction remains subject to regulatory approval and is expected to close in early 2027.