Saint-Gobain buys US-based GCP to grow in construction chemicals

0

Adds details

PARIS, December 6th (Reuters)French building materials group Saint-Gobain SGOB.PA said Monday it would buy GCP Applied Technologies GCP.N in a deal that valued the US specialty chemical company at around $ 2.3 billion.

“This acquisition is a critical step in expanding Saint-Gobain’s global leadership position in construction chemicals with total sales of more than 4 billion euros ($ 4.51 billion) of 3 billion euros,” said Saint-Gobain in a statement .

The acquisition of GCP comes approximately seven months after acquiring Chryso, another player in the specialty construction chemicals business, with an enterprise value of more than $ 1 billion.

“Following the successful acquisition of Chryso, GCP is the next logical step to expand Saint-Gobain’s presence in admixtures and additives that provide key solutions for decarbonising the construction industry,” said Saint-Gobain.

During a conference call, Saint-Gobain’s chief executive officer, Benoit Bazin, highlighted the growth opportunities in the U.S. construction sector, particularly with the Biden government’s massive infrastructure plan.

“The acquisition will add value for the third year upon completion of the transaction. Saint-Gobain will fund the acquisition with cash on balance sheet. The significant synergy opportunities are estimated to be around $ 85 million by the fifth year, ”the company said.

The transaction, expected to close by the end of 2022, is subject to GCP shareholder approval, antitrust approvals, and other customary closing conditions.

($ 1 = 0.8862 euros)

(Reporting by Tassilo Hummel, Matthieu Protard and Benoit Van Overstraeten; editing by Subhranshu Sahu)

(([email protected];))

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.


Source link

Share.

About Author

Comments are closed.