TIDMCOD
RNS Number : 4086B
Compagnie de Saint-Gobain
30 January 2020
PRESS RELEASE
January 30, 2020
SAINT-GOBAIN MOVES FORWARD WITH THE ACQUISITION OF CONTINENTAL
BUILDING PRODUCTS FOLLOWING REGULATORY AND STOCKHOLDER APPROVAL
Saint-Gobain today announces 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.
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 EUR1.3 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.
Strategic benefits:
-- Broadens Saint-Gobain's asset portfolio and enhances ability
to provide wider customer base with innovative solutions. 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. Continental Building Products provides a strong
geographic complement to Saint-Gobain's North American operations,
good positioning in growth regions in the East and Southeast United
States, and strong profitability.
-- Similar culture and shared values. The integration of both
companies will be enabled by similar business cultures and
operational models, which will allow the acceleration of value
creation for our shareholders and our customers.
-- Creates opportunity for at least $50 million in cost
synergies and performance improvements. These cost synergies are
expected by the end of the third year following transaction close
(i.e. full year 2022, one year ahead of the initial schedule).
Saint-Gobain expects the synergies will be captured through the
integration of Continental Building Products' operations into
Saint-Gobain's North America gypsum business.
Pierre-André de Chalendar, Chairman and Chief Executive Officer
of Saint-Gobain, commented:
"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."
Benoit Bazin, Chief Operating Officer, added:
"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."
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.
EUR41.8 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 follow us on Twitter @saintgobain
Analyst/Investor relations Press relations
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Forward-Looking Statements
This press release contains forward-looking statements.
Forward-looking statements may be identified by the use of words
such as "anticipate", "believe", "expect", "estimate", "plan",
"outlook", and "project" and other similar expressions that predict
or indicate future events or trends or that are not statements of
historical matters.
Forward-looking statements should not be read as a guarantee of
future performance or results, and will not necessarily be accurate
indications of the times at, or by, which such performance or
results will be achieved.
Forward-looking statements are based on historical information
available at the time the statements are made and are based on
management's reasonable belief or expectations with respect to
future events, and are subject to risks and uncertainties, many of
which are beyond the Company's control, that could cause actual
performance or results to differ materially from the belief or
expectations expressed in or suggested by the forward-looking
statements.
Forward-looking statements speak only as of the date on which
they are made and the Company undertakes no obligation to update
any forward-looking statement to reflect future events,
developments or otherwise, except as may be required by applicable
law.
Investors are referred to information published by the Company
on its web site (www.saint-gobain.com) and filed with the Autorité
des marchés financiers, including its Annual Report and its
Quarterly Reports for additional information regarding the risks
and uncertainties that may cause actual results to differ
materially from those expressed in any forward-looking
statement.
This communication does not constitute an offer to purchase,
sell or exchange, or the solicitation of an offer to purchase, sell
or exchange, any securities.
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END
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