Saint-Gobain has announced a definitive agreement for the acquisition of global construction chemicals company FOSROC for $1.025bn.
The deals mark a significant step in Saint-Gobain’s expansion in the construction chemicals sector, which is anticipated to report combined sales of €6.2bn ($6.63m) in 73 countries post-acquisition.
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The acquisition aligns with Saint-Gobain’s strategy to expand its global reach in the construction chemicals market. It is also anticipated to enhance the company’s footprint in emerging markets, particularly in India and the Middle East.
The transaction is projected to generate value for Saint-Gobain’s shareholders and customers, with significant synergy potential.
Saint-Gobain chair and CEO Benoit Bazin said: “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.”
FOSROC, with a significant presence in India, the Middle East, and Asia-Pacific, is set to generate sales of $487m with an estimated earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin of 18.7% in 2024.
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By GlobalDataThe company operates 20 manufacturing facilities and employs around 3,000 staff, offering a diverse range of solutions for the construction sector.
FOSROC provides solutions for concrete and cement admixtures, adhesives, sealants, waterproofing, concrete repair, and flooring products.
The acquisition price is a multiple of nearly 11.3 times FOSROC’s estimated 2024 EBITDA of $91m.
The transaction will be paid in cash and is expected to close in the first half of 2025, pending customary conditions.
Saint-Gobain Construction Chemicals CEO Thierry Bernard will lead the integration process and the business will be part of the High Performance Solutions segment.
Morgan Stanley serves as the financial advisor while Freshfields acts as legal counsel to Saint-Gobain for this transaction.
This acquisition follows previous purchases such as Chryso in 2021, GCP in 2022, and 33 others since 2021.
