Saint-Gobain Acquires Global Building Chemicals Leader FOSROC for $1.025 Billion

Saint-Gobain, the French multinational, has officially announced the completion of its acquisition of FOSROC, a global leading private building chemicals company, for a transaction value of $1.025 billion (approximately €960 million), to be paid in cash.

This acquisition marks another solid step forward for Saint-Gobain in the building chemicals sector, further consolidating its global leadership position, following its acquisitions of Chryso in 2021, GCP in 2022, and 33 other acquisitions over the past two years. Upon completion of the transaction, Saint-Gobain's combined sales in the building chemicals market will reach an impressive €6.2 billion, covering 73 countries globally.

FOSROC, a renowned global building chemicals company, has a strong market position and geographical presence in India, the Middle East, and the Asia-Pacific region. The company is expected to generate sales of $487 million in 2024, with an EBITDA margin of 18.7%. Boasting 20 production facilities and around 3,000 employees, FOSROC provides a comprehensive range of technical solutions for the construction industry, including concrete and cement admixtures, adhesives, sealants, waterproofing, and concrete repair.

The acquisition price represents around 11.3 times FOSROC's expected 2024 EBITDA (excluding synergies), but this multiple is expected to decrease significantly to around 7.1 times by the third year, thanks to an estimated $54 million in synergies.

The Group will maintain a prudent financial strategy, with a net debt/EBITDA ratio between 1.5x and 2.0x, including the recently announced acquisitions of Belley and CSR Limited.

The transaction remains subject to customary closing conditions and is expected to be completed in the first half of 2025.

"This is an excellent strategic opportunity that perfectly aligns with Saint-Gobain's 'Growth and Impact' vision," said Benoit Bazin, Chairman and CEO of Saint-Gobain. "It will not only further strengthen our global footprint in building chemicals but also significantly enhance our position in high-growth emerging markets like India and the Middle East. This acquisition will undoubtedly inject new vitality into our global building chemicals business growth platform."

Jim Heeey, Chairman of FOSROC, commented, "This marks the beginning of a new chapter for FOSROC. We have always been committed to delivering outstanding solutions and customer satisfaction, which has enabled us to maintain a leading position in the building chemicals market. I would like to express my heartfelt gratitude to all our team members for their hard work and excellent contributions over the years."

Rob Bonisch, CEO of FOSROC, added, "Becoming part of the global leading light and sustainable building and building chemicals company Saint-Gobain is the ideal choice for us to enhance our product portfolio and leverage their expertise and innovation in the building chemicals sector. I look forward to embarking on a new growth journey together under Saint-Gobain's leadership."