TIDMCOD
RNS Number : 3515Z
Compagnie de Saint-Gobain
20 May 2021
PRESS RELEASE
May 20, 2021
SAINT-GOBAIN ENTERS INTO AN AGREEMENT TO ACQUIRE CHRYSO,
A LEADING global player in construction chemicals
Saint-Gobain today announces having entered into an agreement to
acquire Chryso, a leading global player in the construction
chemicals market providing differentiated and innovative solutions,
from funds advised by Cinven, the international private equity
firm. Chryso provides comprehensive additives solutions for
sustainable construction, relying on innovative chemistry,
formulation expertise, and knowledge of construction materials. The
company employs about 1,300 employees and generated over the last
twelve months revenues of approximately EUR400 million and an
EBITDA of EUR85 million.
The acquisition of Chryso perfectly fits within Saint-Gobain's
strategic vision of worldwide leadership for sustainable
construction. It will further expand the Group's presence in the
growing construction chemicals market with combined sales of more
than EUR3 billion across 66 countries.
The enterprise value of EUR1,020 million represents a multiple
of 12.0x Chryso's last twelve months EBITDA of EUR85 million and a
multiple of 7.6x post run-rate synergies of EUR50 million in year
5. Saint-Gobain will fully finance the acquisition using the
proceeds from divestments made by the Group.
Key strategic benefits of this transaction for Saint-Gobain
include:
-- Reinforcing Saint-Gobain's leadership and growth platform in
construction chemicals , benefiting from solid growth prospects.
Global demand for additives is expected to grow at c. 7% per year
over the 2021-2025 period, outperforming the construction market.
In emerging countries, demand for still underpenetrated
construction chemicals solutions will continue to be supported by
urbanization, growing infrastructure spending, ready-mix solutions
and efficiency gains. In developed economies, demand will be mainly
driven by sustainability requirements as well as productivity,
technical and aesthetics performance.
-- Perfect alignment with Saint-Gobain's strategy towards
solutions for sustainability and performance: the major move
towards l ow-carbon concrete in the next decade will be made
possible by the fast growing application of additives, which
contribute to the strong reduction of concrete CO(2) footprint and
address the aggregate shortage and therefore aid the development of
the circular economy. Additives also address urbanization
mega-trends and infrastructure needs by providing cost
effectiveness, speed and productivity gains. Combining R&D
capabilities will accelerate Chryso's technological development
with the objective to be at the forefront of innovative solutions
for sustainable construction.
-- A leading, highly profitable global player in additives with
strong innovation (35% new products to sales ratio) and fast growth
in both emerging and mature countries. Chryso has a strong growth
record of c. 8% per year over the last 20 years of which c. 2% is
thanks to acquisitions. The company delivers a superior EBITDA
margin - around 20% for the last twelve months - thanks to a highly
experienced management team with a strong track record.
-- A value-creative transaction for Saint-Gobain's shareholders:
value will be created in year 3 following the closing of the
transaction even if only cost synergies of EUR15 million are taken
into account. These cost synergies are expected to be captured
through the integration of Chryso's operations into Saint-Gobain
with benefits to include purchasing, SG&A efficiencies and
reinforced vertical integration. In addition, EUR35 million of
revenue synergies are expected to be achieved thanks to the
enlarged combined commercial platform with opportunities:
(1) to accelerate Chryso's growth in major geographies where it
operates thanks to Saint-Gobain's large presence (India, USA);
(2) to sell Chryso's products in new markets where Saint-Gobain
has a strong presence in construction chemicals (such as Brazil or
South-East Asia);
(3) to develop cross selling opportunities between Chryso &
Saint-Gobain Weber in construction chemicals within Western
Europe.
-- Similar culture and shared values: excellent cultural fit
that bodes well for successful integration. Chryso will be
integrated into Saint-Gobain's High Performance Solutions that will
nurture its strong focus on innovation and co-development with
large global customers. CEO Thierry Bernard and his team will
conduct the group development in specialty additives for building
materials. They will share their outstanding experience and
know-how in this space to accelerate value creation for
Saint-Gobain's shareholders and customers.
Thierry Bernard, Chief Executive Officer of Chryso,
commented:
"We are very enthusiastic to join Saint-Gobain and to build the
next chapter of Chryso's growth story together. This represents a
great recognition for all the accomplishments of Chryso's team over
the past years. Saint-Gobain is the ideal strategic partner with a
worldwide presence in the construction chemicals market and a large
portfolio of solutions, with R&D and innovation capabilities
and operational excellence that will allow Chryso to accelerate its
development and ensure its continued success."
Pierre-André de Chalendar, Chairman and Chief Executive Officer
of Saint-Gobain, and Benoit Bazin, Chief Operating Officer,
commented:
"The acquisition of Chryso is a unique growth platform
opportunity for Saint-Gobain to further develop our already strong
presence in the growing construction chemicals market. It is fully
in line with our ESG* strategy of providing a sustainable and
performance driven value proposition to our customers. We are
impressed with Chryso's profitable growth track record over the
past years and we are very much looking forward to welcoming
Thierry Bernard and his team within our Group. We are confident
that together we can accelerate growth and leverage our combined
know-how and international capabilities to offer innovative
solutions for our customers and drive sustainable and profitable
growth to create value for our shareholders."
Following completion of the information and consultation
procedure with the employees' representative bodies, and subject to
the approval of the relevant competition authorities, this
acquisition is expected to be finalized in the second half
2021.
Lazard is acting as financial advisor, and Gide Loyrette Nouel
is acting as legal counsel to Saint-Gobain in connection with the
transaction.
* ESG: Environment, Social, Governance
ABOUT SAINT-GOBAIN
Saint-Gobain designs, manufactures and distributes materials and
solutions for the construction, mobility, healthcare and other
industrial application markets. Developed through a continuous
innovation process, they can be found everywhere in our living
places and daily life, providing wellbeing, performance and safety,
while addressing the challenges of sustainable construction,
resource efficiency and the fight against climate change. This
strategy of responsible growth is guided by the Saint-Gobain
purpose, "MAKING THE WORLD A BETTER HOME", which responds to the
shared ambition of all the women and men in the Group to act every
day to make the world a more beautiful and sustainable place to
live in .
EUR38.1 billion in sales in 2020
More than 167,000 employees, located in 70 countries
Committed to achieving Carbon Neutrality by 2050
For more information about Saint-Gobain,
visit www.saint-gobain.com and follow us on Twitter @saintgobain
Analyst/Investor relations Press relations
+33 1 88 54 +33 1 88 54
29 77 26 83
+33 1 88 54 Patricia Marie +33 1 88 54
Vivien Dardel 19 09 Bénédicte 14 75
Floriana Michalowska +33 1 88 54 Debusschere +33 1 88 54
Christelle Gannage 15 49 Susanne Trabitzsch 27 96
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Analyst/Investor Conference Call on May 20, 2021 at 6:30 p.m.
Paris time (GMT + 1)
Dial-in: + 33 (0) 1 72 72 74 03 or +44 20 7194 3759 (code
91389529#)
Please dial in 5 to 10 minutes prior to the scheduled start
time
Replay: +33 (0) 1 70 71 01 60 +44 20 3364 5147 (code 425007295#
) from 8:30 p.m. Paris time until June 20, 2021.
A presentation regarding the transaction will be available
before the conference call on
Saint-Gobain's website at:
https://www.saint-gobain.com/en/finance/financial-events
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