(Alliance News) - Compagnie de Saint-Gobain SA on Monday said that it has struck an agreement to acquire an Australian peer, providing a "unique opportunity" to strengthen its presence in the Asia-Pacific construction market.
Saint-Gobain is a Paris-based construction materials company.
The company announced that it had entered a definitive agreement with CSR Ltd, a New South Wales-based building products company, to acquire all the latter's outstanding shares.
Saint-Gobain will pay CSR AUD9.00 per share, representing an enterprise value of AUD4.5 billion, around USD2.95 billion. This represents a 33% premium over CSR's volume weighted average share price for the month to February 20.
Saint-Gobain said that the acquisition "is a unique opportunity for Saint-Gobain to establish a leading presence in the attractive Australian construction market".
As the "worldwide leader in light and sustainable construction", the company added that the deal will be a "decisive step" in strengthening its foothold in the fast-growing Asia-Pacific market.
For the financial year ending in March, CSR is expected to achieve AUD2.0 billion in sales at a 17% margin of earnings before, interest, tax, depreciation and amortisation. CSR also holds a property portfolio, which it plans to monetise in the short to midterm for at least AUD1.3 billion.
Saint-Gobain said that CSR's building product offerings "fit extremely well" with its collection of light and sustainable construction materials.
The acquisition has been unanimously approved by Saint-Gobain's board of directors, and the board of CSR has urged shareholders to vote in favour of the transaction.
If shareholder and requisite regulatory approvals are received, the acquisition is expected to close in the second half of 2024.
Once completed, Saint-Gobain said that the deal would be earnings per share accretive from year one, and produce up to AUD60 million in synergies in year three.
Chief Executive Officer Benoit Bazin said: "I am delighted to announce the acquisition of CSR that represents a decisive step for Saint-Gobain to establish a leading presence in the high-growth Australian construction market. It is fully aligned with our 'grow & impact' strategy and our vision for worldwide leadership in light and sustainable construction."
Shares in Saint-Gobain were down 0.3% at EUR69.98 in Paris on Monday morning.
By Hugh Cameron, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024, Alliance News
Saint-Gobain inks deal for Australian building products firm CSR
(Alliance News) - Compagnie de Saint-Gobain SA on Monday said that it has struck an agreement to acquire an Australian peer, providing a "unique opportunity" to strengthen its presence in the Asia-Pacific construction market.
Saint-Gobain is a Paris-based construction materials company.
The company announced that it had entered a definitive agreement with CSR Ltd, a New South Wales-based building products company, to acquire all the latter's outstanding shares.
Saint-Gobain will pay CSR AUD9.00 per share, representing an enterprise value of AUD4.5 billion, around USD2.95 billion. This represents a 33% premium over CSR's volume weighted average share price for the month to February 20.
Saint-Gobain said that the acquisition "is a unique opportunity for Saint-Gobain to establish a leading presence in the attractive Australian construction market".
As the "worldwide leader in light and sustainable construction", the company added that the deal will be a "decisive step" in strengthening its foothold in the fast-growing Asia-Pacific market.
For the financial year ending in March, CSR is expected to achieve AUD2.0 billion in sales at a 17% margin of earnings before, interest, tax, depreciation and amortisation. CSR also holds a property portfolio, which it plans to monetise in the short to midterm for at least AUD1.3 billion.
Saint-Gobain said that CSR's building product offerings "fit extremely well" with its collection of light and sustainable construction materials.
The acquisition has been unanimously approved by Saint-Gobain's board of directors, and the board of CSR has urged shareholders to vote in favour of the transaction.
If shareholder and requisite regulatory approvals are received, the acquisition is expected to close in the second half of 2024.
Once completed, Saint-Gobain said that the deal would be earnings per share accretive from year one, and produce up to AUD60 million in synergies in year three.
Chief Executive Officer Benoit Bazin said: "I am delighted to announce the acquisition of CSR that represents a decisive step for Saint-Gobain to establish a leading presence in the high-growth Australian construction market. It is fully aligned with our 'grow & impact' strategy and our vision for worldwide leadership in light and sustainable construction."
Shares in Saint-Gobain were down 0.3% at EUR69.98 in Paris on Monday morning.
By Hugh Cameron, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024, Alliance News