Sees run-rate synergies of 54 mln usd in year three (Il Sole 24 Ore Radiocor) - Paris, 27 Jun - French construction materials company Saint-Gobain said it has entered into a definitive agreement to acquire Fosroc, a leading privately owned global construction chemicals player for 1.025 billion US dollars, or 960 million euros, in cash, as it seeks to establish its worldwide presence in the sector.

Fosroc is a global construction chemicals player with a strong geographic footprint in India, the Middle East, and Asia-Pacific in particular.

The company is expected to generate 487 million dollars in sales and an EBITDA margin of 18.7% in 2024. With 20 manufacturing plants, Fosroc provides a wide range of technical solutions for the construction industry, including admixtures and additives for concrete and cement, adhesives and sealants, waterproofing solutions, concrete repair solutions and flooring.

The purchase price represents an acquisition multiple before synergies of approximately 11.3 times Fosroc's estimated 2024 EBITDA of 91 million, and a multiple of approximately 7.1 when including run-rate synergies of approximately 54 million dollars in year three, 39 million of which are cost synergies captured through economies of scale in purchasing, footprint optimization, savings and manufacturing and logistics cost optimization. The deal is expected to be accretive to earnings per share from year one.

This acquisition will be fully financed in cash.

Closing of the transaction is subject to customary conditions and is expected in the first half of 2025.

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(RADIOCOR) 27-06-24 08:06:52 (0085) 5 NNNN