Saint-Gobain acquires major construction chemicals player for $1 billion
27 June 2024
Construction materials giant Saint-Gobain has reached a deal to buy construction chemicals player FOSROC for just over US$1 billion (€960 million).
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FOSROC produces a 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.
It has 20 manufacturing plants and 3,000 employees around the world, with a strong presence in India, the Middle East and Asia-Pacific, according to Saint-Gobain.
This year, FOSROC is expected to generate $487 million in sales and to achieve an EBITDA margin of 18.7%.
Saint-Gobain is fully financing the purchase in cash, with the price representing a multiple of 11.3 times FOSROC’s expected EBITDA in 2024 of $91 million.
Saint-Gobain has been strengthening its worldwide presence in construction chemicals, following its acquisition of Chryso in 2021, GCP in 2022 and 33 other acquisitions since 2021.
It said that “solid macroeconomic factors” including the transition towards low-carbon concrete were driving the strategy. The latest deal also gives it further access to the high-growth emerging markets of India and the Middle East, it said.
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