Saint-Gobain Announces Agreement to Buy Dubai-Based FOSROC
Saint-Gobain recently announced that it has entered into a definitive agreement to acquire FOSROC, a privately-owned global construction chemicals player, for $1,025 million in cash. Following the acquisitions of Chryso in 2021, GCP in 2022 and 33 additional acquisitions since 2021, this move is a new strategic step in establishing Saint-Gobain’s worldwide presence in construction chemicals, which will have combined sales of €6.2 billion across 73 countries following the acquisition (pro forma).
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 of sales and to achieve an EBITDA margin of 18.7% in 2024E. With 20 manufacturing plants and around 3,000 employees, 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.
This acquisition will be fully financed in cash, and closing of the transaction is subject to customary conditions and is expected in first-half 2025. Thierry Bernard, chief executive officer of Construction Chemicals, will lead the integration. Bernard will work with the experienced team that developed the Chryso business over many years, managed its integration within Saint-Gobain and has piloted its successful combination with GCP since 2022. FOSROC will be consolidated into the High Performance Solutions segment.
Benoit Bazin, chairman and chief executive officer of Saint-Gobain, commented, "The acquisition of FOSROC is perfectly aligned with our 'Grow & Impact' strategic plan: it is a unique opportunity for Saint-Gobain to further reinforce its worldwide presence in construction chemicals, and to strengthen its presence in high-growth emerging markets, in particular in India and the Middle East. I am very impressed with FOSROC’s leadership, its strategy and its impressive development, as well as the team’s track record of excellent execution and profitable growth. The combination of the two groups will allow us to expand our profitable growth platform in construction chemicals. I am looking forward to warmly welcoming the FOSROC teams into the Group and I am very confident about the combination of our joint forces."
For more information about Saint-Gobain, visit www.saint-gobain.com.
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