Company: De Gerritse Holding B.V.
www.gerritse.nl
Date investment: September 2010
Investment: Growth, Buy-and-build
Status: Current investment

De Gerritse Holding B.V. (“Gerritse”) is a business-to-business ironmongery and hardware distributor founded in 1928. The company is targeting small construction companies through its 23 locations in the central and western part of The Netherlands and its online shop. In 2009 Gerritse generated net sales of about € 55 million with circa 300 FTEs. Gerritse distinguishes itself from its competitors through its extensive product range in tools, fasteners, door and window fittings and other ironmongery products, and its high-quality service. The company has circa 18,000 product items on stock.

The total market in The Netherlands for business to business ironmongery distribution is about € 1 billion. The competitive landscape is very fragmented with over 150 players. Gerritse has a leadership position in western Netherlands. In the past years, the market has shown first signs of consolidation. Scale is increasingly important for efficiency in for example purchasing and logistics. Also, scale allows strong companies to continue to invest in quality of service and availability of a broad assortment. Given its winning business concept and strong market position Gerritse provides a strong platform for accelerated growth and consolidation of a still fragmented market.

H2 Equity Partners has acquired a controlling position in Gerritse. The investment thesis is to create additional shareholder value by accelerating growth by expanding the branch network and through add-on acquisitions. The unique Gerritse service concept will be maintained and continuously improved based on evolving customer needs.