Saint-Gobain yesterday announced that Continental Building Products (NYSE: CBPX) obtained shareholder approval to be acquired by Saint-Gobain and that the waiting period under the Hart-Scott-Rodino Act has expired thereby satisfying the regulatory approval requirements under the merger agreement. The Group expects the deal to close on February 3, 2020.
“We are excited to have quickly received all necessary approvals to finalize the acquisition of Continental Building Products. This transaction will allow us to become a leading player in plasterboard and construction solutions across North America. It will enable the Group to enhance its growth and profitability profile, in line with the objectives of our ‘Transform & Grow’ program, and will create value for our shareholders,” commented Pierre-André de Chalendar, Chairman and Chief Executive Officer of Saint-Gobain.
Upon completion of the transaction, Saint-Gobain will acquire all 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).
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.
“By combining forces with Continental Building Products, we have a unique opportunity to deliver innovative products to growth markets across North America, while maintaining a superior level of customer service. We are delighted that key leaders of Continental Building Products will be joining our plasterboard business in the US, which will be managed by Jay Bachmann, former CEO of Continental Building Products, reporting to Mark Rayfield, CEO Saint-Gobain North America. Our integration plan is on track and we are confident in our ability to deliver the expected synergies,” added Benoit Bazin, Chief Operating Officer.
View the entire press release and Forward Looking Statements at https://www.saint-gobain.com/sites/sgcom.master/files/20200130_continental_va.pdf.
