Published On : 2020-01-30
Saint-Gobain, a French multination corporation that produces high-performance, construction, and other materials, is set to acquire Continental Building Products, a US manufacturer of drywall and joint compound materials. Originally a mirror manufacturer, the company is expecting to complete the acquisition in February 2020. Continental Building Products has received shareholder approval for the acquisition by Saint-Gobain. Regulatory approval requirements as per the merger agreement have also been satisfied with expiration of the waiting period under the Hart-Scott-Rodino Act. The nearly $1.4 billion acquisition will help improve Saint-Gobain’s US presence in key growth regions. Saint-Gobain will pay around $37.0 per share in cash to acquire all outstanding shares of Continental Building Products.
“By combining forces with Continental Building Products, Saint-Gobain has a unique opportunity for delivering innovative products to growth markets across North America, while maintaining a superior customer service level. We’re delighted that key Continental Building Products leaders will join Saint-Gobain’s plasterboard business in the US, which former Continental Building Products CEO Jay Bachmann will manage, reporting to Saint-Gobain North America CEO Mark Rayfield. Our integration plan is on track and we’re confident about our ability to deliver the expected synergies,” said COO of Saint-Gobain, Benoit Bazin.
Acquisition to help expand Saint-Gobain’s asset portfolio
“Saint-Gobain is excited to have received quickly all the necessary approvals for finalizing the Continental Building Products acquisition. The transaction will be allowing us to become a leading plasterboard and construction solutions player across North America. It will be enabling the Group to improve its profitability and growth profile, in line with our ‘Transform and Grow’ program’s objectives, and will be creating value for our shareholders,” said Chairman and CEO of Saint-Gobain, Pierre-André de Chalendar.
The acquisition will create an opportunity for nearly $50 million in cost synergies and performance improvements for Saint-Gobain. It will also advance value creation for customers and shareholders on the back of similar operational models and business cultures. In addition, it strengthens Saint-Gobain’s ability to provide innovative solutions to a broader customer base and widens the group’s asset portfolio.
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