Saint-Gobain announces that it has entered into a definitive agreement to acquire Kaycan Ltd.

(Boursier.com) — Saint Gobain announces that it has entered into a definitive agreement for the acquisition of Kaycan Ltd, a family business producing and distributing outdoor building materials in Canada and the United States, for an amount of 928 million US dollars in cash (i.e. approximately 860 millions of euros).
With this acquisition, Saint-Gobain is strengthening its status as a world leader in sustainable construction by becoming the major player in siding in Canada and by expanding its vinyl covering offer in the United States with solutions including, in particular, complementary products based on aluminum or processed wood.

Before synergies, the price corresponds to a multiple of approximately 11.2x Kaycan’s estimated 2021-20221 EBITDA of US$83 million. The multiple is approximately 8x EBITDA after taking into account full-year synergies of US$30 million and based on a net acquisition price of approximately US$820 million after the planned disposal soon after the closing of the transaction, to a third party, Kaycan’s small distribution activity in the United States (which represents a turnover of resale to third parties of Kaycan products of approximately US$70 million and EBITDA of approximately US$10 million), assuming a similar pre-synergies multiple for this divestment. The distribution activity in Canada, with a very strong local presence, will be retained.