Meyer Intnl. PLC - Saint-Gobain Stmnt Re Offer
February 01 2000 - 3:37AM
UK Regulatory
RNS Number:7600E
Meyer International PLC
1 February 2000
SAINT-GOBAIN ANNOUNCES A RECOMMENDED CASH OFFER FOR
MEYER INTERNATIONAL PLC TO CREATE THE LEADING
EUROPEAN BUILDERS' MERCHANT
The Board of SAINT-GOBAIN met on 27 January 2000 and unanimously approved
the launch of a recommended cash offer for MEYER INTERNATIONAL PLC, the
UK's leading builders' merchant. MEYER INTERNATIONAL is listed on the
London Stock Exchange (MYER.L). This acquisition will significantly
increase SAINT-GOBAIN's position in building materials distribution and
create a leading position in Europe, where markets are large but
fragmented. MEYER INTERNATIONAL's turnover is expected to be about 28bn
(#1.7bn) in 2000; SAINT-GOBAIN's turnover in this business is 4.1bn
(#2.5bn).
The offer price of 515 pence per share represents a premium of 61% over
the mid market closing price of 320 pence on 28 January 2000 (i.e. the
last available share price before SAINT-GOBAIN approached MEYER
INTERNATIONAL). The price offered also represents a 41% premium over the
average share price for the month to 28 January 2000. The transaction
values the issued equity of MEYER INTERNATIONAL at approximately 1,726m
(#1,040m) and net debt on 30 September 1999 was 375bn (#226m).
The Board of MEYER INTERNATIONAL has unanimously agreed to recommend the
offer to shareholders
MEYER INTERNATIONAL generates over 80% of its sales and profits from
building materials distribution, is the number 1 (16% market share) in
the UK for the distribution of building materials products, and number 2
for plumbing products (15% market share).
The Building Materials Distribution division of SAINT-GOBAIN operates in
these two markets in France via its subsidiaries Point P/Lapeyre and La
Plateforme du Batiment. Turnover was around 41bn (#2.5bn) in 1999, of
which 85% was in building materials and 15% in plumbing. The division
grew turnover by on average 13% p.a. in the last four years.
The acquisition of MEYER INTERNATIONAL will make SAINT-GOBAIN the
European market leader in building materials distribution, with a
multi-format, multi-brand product range. The two businesses are an
excellent fit technically and commercially and are geographically
complementary in Europe. This alliance will provide the customers of both
companies with a wider range of products and will build on the strengths
of Point P and Lapeyre in France and MEYER INTERNATIONAL in the UK. On a
pro forma basis, the combined sales of the businesses would have been
around 7bn (#4.2bn) in 1999. The deal will increase the contribution of
building materials distribution to SAINT-GOBAIN's turnover from 18% to
27% and its contribution to operating profit from 11% to 17%.
The deal will allow SAINT-GOBAIN to benefit from substantial synergies,
which are expected to arise from both increased purchasing power and
sharing of best practices (marketing, logistics, information systems) in
France and the UK as well as in the rest of Europe. The acquisition will
be earnings enhancing for SAINT-GOBAIN from 2001.
Investor Relations Department
Florence TRIOU-TEIXEIRA Tel.: +33 1 47 62 45 19
Lounis BEKKAT Tel.: +33 1 47 62 32 36
fax : +33 147 62 50 62
END
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