DSG successfully renews and extends its financing

In mid-2024, DSG signed a renewed and extended financing agreement. With this financing, DSG can amply meet its working capital needs and has financial strength to achieve its growth strategy with targeted acquisitions.

About DSG

In 1926, Stichtsche Houthandel N.V. was founded in Utrecht. Founder was the then 26-year-old Gerrit Sijbrand Pelt. With the Stiho, Bouwmaat, Baars & Bloemhoff and Broeinest formulas, DSG serves different target groups with materials, tools, services, advice and inspiration. Each formula has its own product range aimed at a specific segment of the construction industry. DSG attaches great value to long-term and open relationships with customers, suppliers, employees and shareholders and carries out all our activities with respect for the living environment, the climate and society.

DSG’s formulas build a more sustainable product range and business operations every day. Together with customers, partners and colleagues, they want to help accelerate the transition to a sustainable and circular construction industry. On 1 May 2024, DSG published its first Corporate Social Responsibility Report. From financial year 2025, DSG will be subject to the Corporate Sustainability Reporting Directive: the obligation to produce an ESG report. DSG has already made this annual social report on a voluntary basis.

Stiho acquisitions

Stiho recently strengthened its position for builders in South Holland by two acquisitions with a total of three branches. Like DSG, Alblas Hout (branches in Moordrecht and Rotterdam) and Verhulst Bouwmaterialen en Afbouwcenter (Den Haag) are family businesses with a long history and strong local ties to customers. That is why both companies fit in perfectly with Stiho, which has long wanted an even stronger presence in South Holland.

Renewed and extended financing

The existing financing was finalised in 2017 and, after exercising two extension options, ran until the end of 2024. The existing financing was characterised by high flexibility, ample scope for scaling up financing, loose covenants and competitive rates. The new financing continues the existing financing with a limited number of changes. The main change is DSG’s desire to link the financing to ESG sustainability KPIs. In consultation with the bank, a single all-encompassing kpi was chosen in the form of the Ecovadis score. Ecovadis specialises in this and produces an annual sustainability score for a large number of companies.

Edith Appels, CFO/COO DSG:  “Orchard Finance helped us excellently with the process of refinancing and the integral comparison of the various options, taking a wider perspective than the current providers and allowing us to extend on attractive terms in a well-considered manner.“

Collaboration with Orchard Finance

Orchard assisted DSG in the refinancing as financing advisor. Orchard has fulfilled this role for DSG since 2012. This illustrates the high value that DSG and Orchard place on long-term and open relationships with customers and suppliers.