France $42 Billion Materials Manufacturer Saint-Gobain to Buy UAE Dubai Construction Chemicals Group FOSROC for $1 Billion in All-Cash Deal
4th July 2024 | Hong Kong
France materials manufacturer Saint-Gobain (4/7/24: $42 billion market value) has announced to buy UAE (United Arab Emirates) Dubai construction chemicals Group FOSROC for $1 billion (EUR 960 million) in an all-cash deal. Saint-Gobain (27/6/24): “Saint-Gobain announces that it has entered into a definitive agreement to acquire FOSROC, a leading privately owned global construction chemicals player for $1,025 million (approximately €960 million) in cash. Following the acquisitions of Chryso in 2021, GCP in 2022 and 33 additional acquisitions since 2021, this move is a new strategic step in establishing Saint-Gobain’s worldwide presence in construction chemicals, which will have combined sales of €6.2 billion across 73 countries following the acquisition (pro forma). FOSROC is a global construction chemicals player with a strong geographic footprint in India, the Middle East and Asia-Pacific in particular. The company is expected to generate $487 million of sales and to achieve an EBITDA margin of 18.7% in 2024E. With 20 manufacturing plants and around 3,000 employees, FOSROC provides a wide range of technical solutions for the construction industry, including admixtures and additives for concrete and cement, adhesives and sealants, waterproofing solutions, concrete repair solutions and flooring. The purchase price represents an acquisition multiple (before synergies) of approximately 11.3x FOSROC’s 2024E EBITDA of $91 million, and a multiple of approximately 7.1x when including run-rate synergies of approximately $54 million in year 3. This acquisition will be fully financed in cash. The Group will maintain a strong balance sheet with net debt / EBITDA remaining at the low end of the target range (1.5x to 2.0x) including the recently announced Bailey and CSR Limited acquisitions. Closing of the transaction is subject to customary conditions and is expected in first-half 2025.”
“ France $42 Billion Materials Manufacturer Saint-Gobain to Buy UAE Dubai Construction Chemicals Group FOSROC for $1 Billion in All-Cash Deal “
Benoit Bazin, Chairman & CEO of Saint-Gobain: “The acquisition of FOSROC is perfectly aligned with our “Grow & Impact” strategic plan: it is a unique opportunity for Saint-Gobain to further reinforce its worldwide presence in construction chemicals, and to strengthen its presence in high-growth emerging markets, in particular in India and the Middle East. I am very impressed with FOSROC’s leadership, its strategy and its impressive development, as well as the team’s track record of excellent execution and profitable growth. The combination of the two groups will allow us to expand our profitable growth platform in construction chemicals. I am looking forward to warmly welcoming the FOSROC teams into the Group and I am very confident about the combination of our joint forces.”
Jim Hay, Chairman of FOSROC: “Today marks the beginning of an exciting new chapter in the history of FOSROC. Our focus on delivering the best solutions and satisfaction to our customers has enabled us to become a leading player in construction chemicals. I want to thank all our teams for their outstanding work over many years.”
Rob Bonnici, CEO of FOSROC: “The opportunity to join Saint-Gobain, worldwide leader in light and sustainable construction and a global player in construction chemicals is the perfect next step to enhance our offer by leveraging Saint-Gobain’s innovation and technology in construction chemicals. I look forward to continuing our growth journey within Saint-Gobain.”
Saint-Gobain – Worldwide leader in light and sustainable construction, Saint-Gobain designs, manufactures and distributes materials and services for the construction and industrial markets. Its integrated solutions for the renovation of public and private buildings, light construction and the decarbonization of construction and industry are developed through a continuous innovation process and provide sustainability and performance.
France $42 Billion Materials Manufacturer Saint-Gobain to Buy UAE Dubai Construction Chemicals Group FOSROC for $1 Billion in All-Cash Deal
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