LafargeHolcim to acquire Firestone Building Products for $3.4b
Economic Reporter :
The LafargeHolcim, one of the largest cement makers, is set to acquire Firestone Building Products (FSBP) – a leader in commercial roofing and building envelope solutions, based in the United States (US) – for $3.4 billion.
“The transaction is to be financed with cash and debt while maintaining net debt below 2x Synergies of $110 million per year are expected on a run-rate basis within two years of closing, which is expected in the second quarter. The acquisition is earnings per share accretive from the first year,” read a media statement on Thursday.
The acquisition of FSBP will strengthen LafargeHolcim’s biggest market, the US, establishing a new growth profile, reaching $6 billion in annual net sales, the statement added. Moreover, with this acquisition LafargeHolcim will add 15 manufacturing facilities, 1,800 distribution points and three R&D laboratories to its network.
FSBP brought in roughly $1.8 billion in sales in 2020 and $270 million in earnings before interest, taxes, depreciation, and amortisation.
Upon completion of the sale, FSBP will continue to be headquartered in Nashville, Tennessee, and all 1,900 FSBP employees will transition to LafargeHolcim.
Regarding the massive deal, Jan Jenisch, CEO of LafargeHolcim said, “With Firestone Building Products we are strengthening our biggest market, the US, while also building a global growth and innovation platform for the company.”
The LafargeHolcim, one of the largest cement makers, is set to acquire Firestone Building Products (FSBP) – a leader in commercial roofing and building envelope solutions, based in the United States (US) – for $3.4 billion.
“The transaction is to be financed with cash and debt while maintaining net debt below 2x Synergies of $110 million per year are expected on a run-rate basis within two years of closing, which is expected in the second quarter. The acquisition is earnings per share accretive from the first year,” read a media statement on Thursday.
The acquisition of FSBP will strengthen LafargeHolcim’s biggest market, the US, establishing a new growth profile, reaching $6 billion in annual net sales, the statement added. Moreover, with this acquisition LafargeHolcim will add 15 manufacturing facilities, 1,800 distribution points and three R&D laboratories to its network.
FSBP brought in roughly $1.8 billion in sales in 2020 and $270 million in earnings before interest, taxes, depreciation, and amortisation.
Upon completion of the sale, FSBP will continue to be headquartered in Nashville, Tennessee, and all 1,900 FSBP employees will transition to LafargeHolcim.
Regarding the massive deal, Jan Jenisch, CEO of LafargeHolcim said, “With Firestone Building Products we are strengthening our biggest market, the US, while also building a global growth and innovation platform for the company.”
