Benoît Bazin, the CEO of Saint-Gobain, had been preparing this strategic operation for more than four years. ” Methodically “, he specifies. It’s done: the world number one in construction materials announced, Monday February 26, the cash buyout of the Australian CSR Limited for 2.7 billion euros, the largest acquisition since that of British Plastic Board, leader in plasterboard, in 2005. This takeover offer at 9 Australian dollars per share offers a premium of 33% over the average of the last month. Once sold, the real estate assets of the construction leader of this country-continent, the cost of the operation will be reduced to around 1.9 billion.
“Saint-Gobain’s balance sheet is very solid, and we will finance the operation from our available cash”explains Mr. Bazin, who will present, Thursday February 29, very good results for 2023. It will not increase the net debt in relation to the gross operating surplus (Ebitda) and presents a “perfect alignment” with Saint-Gobain’s strategy for sustainable growth, he adds.
In the Asia-Pacific region, Saint-Gobain has already focused on India, Vietnam, Indonesia and the Philippines, strong growth markets. Less on China, which only accounts for 3% of turnover, and where the multinational has always been very cautious. Australia and its 25.7 million inhabitants were “a hole in the map” of Saint-Gobain locations, notes Mr. Bazin.
However, the southern country presents a demographic dynamism very favorable to the core business of Saint-Gobain, with 400,000 immigrants each year. “CSR is present throughout the country, particularly in metropolitan areas; it has 30 factories and 120 logistics hubs”, he describes. It also underlines Canberra’s commitment to strengthening the energy efficiency of buildings through a reform of the construction code which will benefit the French group’s solutions.
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The company itself, which employs 2,500 people for a construction turnover of 1.2 billion euros, meets Saint-Gobain’s expectations. It provides complete solutions to improve the quality of housing, offices and new public buildings, and is part of the reorganization by country – and no longer by business – of Saint-Gobain, implemented since 2019 by Mr. Bazin . CSR will also be consolidated “as the entity operating the group’s activities in Australia and New Zealand within the Asia-Pacific region”.
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