France Saint-Gobain signs deal to acquire US GCP for $2.3bn
HOUSTON (ICIS)–Saint-Gobain has signed an agreement to acquire US-based construction-chemicals producer GCP Applied Technologies for $2.3bn, the France-based building-materials producer said on Monday.
The price comes to $32/share and represents a multiple of 13.2x of GCP’s 2022 estimated adjusted earnings before interest, tax depreciation and amortisation (EBITDA), Saint-Gobain said. That 2022 estimate for adjusted EBITDA comes to $170m.
The stock-price offer of $32/share represents a 39% premium of the average GCP stock price during November, Saint-Gobain said.
The boards of the two companies have unanimously approved the agreement. Saint-Gobain has obtained undertakings from Starboard and Standard Investments to vote in favour of the deal.
Starboard holds an 8.9% stake in GCP and Standard holds a 24.2% stake, Saint-Gobain said.
Closing should take place by the end of 2022 and it is contingent on approval from shareholders and anti-trust regulators, Saint-Gobain said.
The company expects the deal will create value by the third year after closing. Saint-Gobain said it will finance the acquisition with cash.
Synergies should reach $85m by the fifth year, including cost synergies of $72m.
Revenue synergies should result in a benefit of at least $13m in EBITDA, the company said.
GCP makes cement additives and concrete admixtures as well as waterproofing and building-envelope products.
Saint-Gobain expects such admixtures and additives will play a key role in reducing carbon emissions in the construction industry.
GCP’s roofing underlayment products and waterproofing portfolio should complement Saint-Gobain’s CertainTeed business.
GCP’s specialty building materials business will be integrated into Saint-Gobain’s CertainTeed business that serves customers in the Americas.
GCP’s concrete admixtures and cement additives will be combined with Saint-Gobain’s Chryso business and be part of the company’s High Performance Solutions segment.
Simon Bates, GCP CEO, said, “We are thrilled for GCP to join Saint-Gobain, the ideal strategic partner to support our growth. Thanks to its global platform, significant resources as well as commercial and innovation expertise, Saint-Gobain is perfectly positioned to ensure the success of GCP’s operations and people over the long term.”
GCP was separated from US catalysts and specialty chemicals company WR Grace in 2016.
Many of its raw materials are organic chemicals derived from olefins, including specialty films and fibres. GCP also buys lignin, plasticizers, films, ethylene derivatives and rubber.
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