The transaction is a part of portfolio optimization strategy of Saint-Gobain, which will act as one of the two pillars of its transformation program “Transform & Grow”.
Saint-Gobain has reportedly announced that it has signed a definitive agreement with Continental Building Products to buy all of its outstanding shares for $37.00 per share. The transaction will be in cash valued at around $1.4 billion (close to €1.3 billion). The Board of Directors of both the companies have unanimously approved the same.
The agreement will help Saint-Gobain to broaden its asset portfolio and improve ability to offer innovative solutions to wider customer base. Continental Building Products has established a superior platform in plasterboard in North America with strong customer relationships. This will help Saint-Gobain to increase its presence in the United States and offer better commercial coverage and more effective logistics services.
Edward Bosowski, Chairman, and Jay Bachmann, Chief Executive Officer, Continental Building Products, reportedly stated that Saint-Gobain is an ideal strategic partner with the resources to aid development, dedication to operational excellence and global platform which will help the company to continue providing outstanding customer service.
Pierre-André de Chalendar, Chairman and Chief Executive Officer, and Benoit Bazin, Chief Operating Officer, Saint-Gobain commented further on the transaction that the acquisition of Continental Building Products is a remarkable opportunity for the company, which will help it to lead in plasterboard and construction solutions in North America.
The transaction is a part of portfolio optimization strategy of Saint-Gobain which will act as one of the two pillars of its transformation program “Transform & Grow”. Since the beginning of the year, the company has closed 12 transactions including Plaka Mexico (plasterboard), Pritex (Mobility, acoustic solutions), Celima (Mortars in Peru), and several other to improve its position in Distribution in Nordic countries.
It is said that Lazard and Morgan Stanley have been acting as financial advisors of Saint-Gobain for the transaction. Also, Cleary Gottlieb Steen & Hamilton have been assisting as legal counsel to the company in connection with the transaction.