Sustainable construction business Saint-Gobain has agreed to acquire residential roofing shingles and wood fibre insulation panels manufacturer Building Products of Canada.

This acquisition will strengthen Saint-Gobain's position in the Canadian market in the categories of light and sustainable construction.

It will allow the company to expand its offering of exterior solutions, complementing its existing operations in interior solutions.

The acquisition aligns with Saint-Gobain's strategic and financial criteria, creating value within three years, and maintaining a strong balance sheet.

Building Products of Canada has three manufacturing plants and employs more than 460 people.

The company has a strong presence in asphalt shingle roofing and offers a comprehensive range of exterior building products.

It sells through various channels, including home centre retailers and via speciality distribution.

Saint-Gobain plans to add C$435m ($325m) to its sales in Canada.

The acquisition will enable the company to provide a full range of roofing products and expand its sustainable construction solutions.

The transaction is expected to generate significant synergies of approximately C$50m by the third year.

This includes cost synergies from materials procurement, the implementation of Saint-Gobain's 'World Class Manufacturing' programme, and the optimisation of freight and logistics costs.

Sales synergies are also anticipated through cross-selling opportunities and the expansion of product ranges.

Saint-Gobain CEO Benoit Bazin said: “This is an important and logical step for Saint-Gobain, allowing us to establish a leading position in roofing in Canada, completing our offering for the building envelope, which we have reinforced with the recent Kaycan and GCP acquisitions. It completes our offering of solutions for light and sustainable construction in Canada as we have done successfully in the United States.

“The acquisition is perfectly aligned with our 'Grow & Impact' strategy, reinforces our position in North America and builds on our many proven successes in this region over the last four years.

"It will create significant value for shareholders, enhance the profitable growth outlook of the group, enrich our solutions to better serve our customers and provide attractive development opportunities for both the Building Products of Canada and Saint-Gobain teams.”

The deal is expected to close by the end of the year, subject to certain customary conditions.