Saint-Gobain and Continental Building Products (NYSE: CBPX) yesterday announced that they have entered into a definitive agreement pursuant to which Saint-Gobain will acquire all of the outstanding shares of Continental Building Products for $37.00 per share, in cash, in a transaction valued at approximately $1.4 billion (approximately €1.3 billion). The business combination has been unanimously approved by the Board of Directors of Saint-Gobain and by Continental Building Products’ Board of Directors.

Continental Building Products, a highly respected plasterboard player in North America, employs 645 people and is expected to generate 2019 revenues of approximately $510 million and adjusted EBITDA of approximately $130 million per broker consensus. The business has strong geographic complementarity with Saint-Gobain’s North American operations, good positioning in growth regions in the East and South-East of the United States and strong profitability.

Strategic Benefits

  • Broadens Saint-Gobain’s asset portfolio and enhances ability to provide wider customer base with innovative solutions. Continental Building Products has developed a top-tier platform in plasterboard in North America with strong customer relationships. The combination will allow customers to benefit from an enriched product portfolio supported by Saint-Gobain’s global R&D and product development infrastructure.
  • Increases Saint-Gobain’s presence in growth regions in the United States. The geographical complementarity of the production sites will allow better commercial coverage and more efficient logistics services, in particular in high growth regions in the United States.
  • Creates opportunity for approximately $50 million in cost synergies and performance improvements. These cost synergies are expected by the end of the third year following transaction close. Saint-Gobain expects the synergies will be captured through the integration of Continental Building Products’ operations into Saint-Gobain’s North America gypsum business. The categories of benefits include logistics optimization, purchasing, operations and SG&A efficiencies. In addition, Saint-Gobain expects to benefit from additional sales thanks to an enlarged commercial platform and its ability in transversal innovation, to the benefit of North American consumers.
  • Similar culture and shared values. Continental Building Products’ teams will be integrated into the Group’s gypsum business in North America, which will in turn be able to lean on their expertise and know-how. Continental Building Products’ continuous operational improvement program, Bison Way, rests on the same pillars as the World Class Manufacturing program at Saint-Gobain. The integration of both companies will be enabled by close business cultures and operational models, which will allow the acceleration of value creation for our shareholders and our customers.

 

ABOUT SAINT-GOBAIN 
Saint-Gobain designs, manufactures and distributes materials and solutions which are key ingredients in the wellbeing of each of us and the future of all. They can be found everywhere in our living places and our daily life: in buildings, transportation, infrastructure and in many industrial applications. They provide comfort, performance and safety while addressing the challenges of sustainable construction, resource efficiency and climate change.

€41.8 billion in sales in 2018  Operations in 68 countries More than 180,000 employees

For more information about Saint-Gobain, visit www.saint-gobain.com and and follow on Twitter @saintgobain

Read the entire press release at https://www.saint-gobain.com/sites/sgcom.master/files/20191112_continental_va.pdf