MOSCOW (MRC) -- Saint-Gobain has signed an agreement to acquire US-based construction-chemicals producer GCP Applied Technologies for USD2.3bn, said Reuters.
The price comes to USD32/share and represents a multiple of 13.2x of GCP's 2022 estimated adjusted earnings before interest, tax depreciation and amortisation (EBITDA), Saint-Gobain said. That 2022 estimate for adjusted EBITDA comes to USD170m.
The stock-price offer of USD32/share represents a 39% premium of the average GCP stock price during November, Saint-Gobain said. The boards of the two companies have unanimously approved the agreement. Saint-Gobain has obtained undertakings from Starboard and Standard Investments to vote in favour of the deal.
Starboard holds an 8.9% stake in GCP and Standard holds a 24.2% stake, Saint-Gobain said. Closing should take place by the end of 2022 and it is contingent on approval from shareholders and anti-trust regulators, Saint-Gobain said. The company expects the deal will create value by the third year after closing. Saint-Gobain said it will finance the acquisition with cash. Synergies should reach USD85m by the fifth year, including cost synergies of USD72m.
Revenue synergies should result in a benefit of at least USD13m in EBITDA, the company said. GCP makes cement additives and concrete admixtures as well as waterproofing and building-envelope products. Saint-Gobain expects such admixtures and additives will play a key role in reducing carbon emissions in the construction industry. GCP's roofing underlayment products and waterproofing portfolio should complement Saint-Gobain's CertainTeed business.
GCP's specialty building materials business will be integrated into Saint-Gobain's CertainTeed business that serves customers in the Americas. GCP's concrete admixtures and cement additives will be combined with Saint-Gobain's Chryso business and be part of the company's High Performance Solutions segment.
As per MRC, Saint-Gobain has invested in Continuous Composites, a US 3D printing company based in Coeur d’Alene, Idaho. At the same time, the companies signed a joint development agreement for the commercialisation of Continuous Composites' patented Continuous Fiber 3D Printing (CF3D) process. CF3D combines continuous fibre with rapid curing thermostat resins to enable on-demand manufacturing of complex composite structures.
As MRC informed earlier, Saint-Gobain, the world's largest manufacturer of building materials, has opened the third plant in Russia for the production of dry building mixtures in the city of Yegoryevsk, Moscow Region. The total investment in the construction of the plant amounted to more than 500 mln rubles.
Saint-Gobain is an international industrial group of companies headquartered in Paris. At present, the group includes 1.5 thousand companies from 64 countries, and employs about 190 thousand employees. According to the Forbes rating, Saint-Gobain is among the top 100 largest industrial companies in the world. The company operates in four sectors: innovative materials, construction products, glass containers and packaging, distribution of construction materials.
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