Saint-Gobain has entered a definitive agreement to acquire OVNIVER Group, a company specialising in the construction chemicals market in Mexico and Central America, for $815m in cash.
The transaction, expected to close in the first half of 2025, is subject to customary conditions.
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This acquisition is a move to bolster Saint-Gobain’s global presence in the construction chemicals sector, following previous acquisitions of Chryso, GCP, and the ongoing FOSROC deal.
Saint-Gobain revealed a definitive agreement for the acquisition of FOSROC for $1.025bn in June this year.
OVNIVER has a commercial and industrial presence in its markets, with projected revenues of $285m and an average growth rate of 20% per year over the last five years.
By 2024, the company is expected to achieve earnings before interest, taxes, depreciation, and amortisation margin of 21.7%.
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By GlobalDataWith 16 manufacturing plants and approximately 1,000 employees, OVNIVER provides a range of solutions for residential and non-residential construction markets.
These include facade coatings, tile adhesives, waterproofing, and surface preparation mortars.
OVNIVER’s positions in countries such as Mexico, Honduras, El Salvador, and Guatemala are set to complement Saint-Gobain’s existing manufacturing footprint in the region.
This acquisition, along with recent purchases of IMPAC and Imptek, aims to accelerate the introduction of sustainable solutions in the Mexican and Central American markets.
It is anticipated to be value accretive for Saint-Gobain’s shareholders and customers, offering synergy potential.
The company expects to realise about $40m in synergies by the third year post-transaction, with $26m from cost savings through operational improvements, logistics optimisation, and procurement economies of scale.
Furthermore, at least $14m in growth synergies are projected from cross-selling opportunities.
These synergies will build on Saint-Gobain’s existing presence in the light and sustainable construction sector in the region, which already generates more than $1.5bn in sales.
The acquisition is expected to create value by the third year following the close and will be earnings per share accretive from the first year.
BNP Paribas is serving as the financial advisor and Galicia is providing legal counsel to Saint-Gobain for this transaction.
