Saint-Gobain is continuing its development in the chemistry of sustainable construction. The group announced, Monday, December 6, the acquisition for 32 dollars per share (28 euros) of the American GCP Applied Technologies, that is to say an enterprise value of 2.3 billion dollars. After the buyout in May of Chryso for 1 billion euros, this acquisition constitutes, according to its CEO, Benoit Bazin, a “Decisive step” to remain one of the world leaders in this growing sector: the turnover of this activity will increase from 3 billion to more than 4 billion euros, or nearly 10% of the group’s revenues.
The American company, paid a multiple of 13.2 times the gross operating surplus (EBITDA), meets Saint-Gobain’s financial investment criteria. Funded from cash, “The operation will have a very limited impact on the group’s debt”, said its chief financial officer, Sreedhar Natarajan. After taking into account synergies, estimated at $ 85 million after five years, the price will represent 8.8 times GCP’s EBITDA in 2022. The closing of the transaction (closing) is due to take place at the end of 2022, once the green light has been obtained from the competition authorities.
This operation “Tick all the boxes” Saint-Gobain’s industrial and commercial strategy in terms of sustainable development and its offerings for its customers, assures Mr. Bazin. GCP’s geographic presence is complementary to that of Chryso, mainly present in Europe, Africa and the Middle East. GCP, which employs 1,800 people at 75 sites in 38 countries, will strengthen Saint-Gobain’s commercial strength in these products (admixtures for concrete, cement additives, waterproofing, etc.).
Create “a pillar unique in the world”
Mr. Bazin acknowledges that by the time he bought Chryso he already had his sights set on GCP. The goal: to create “A pillar unique in the world” in this construction chemicals sector. The more than tercentenary group is launched in the race for carbon neutrality in 2050 for CO emissions2, direct or indirect, linked to its productive activities (scopes 1 and 2). But it must also reduce the footprint of the products offered to its customers (scope 3).
The acquisition of GCP is an external growth operation that is part of this strategy. Concrete admixtures alone can reduce CO content by three2, which reaches 450 kg per cubic meter, underlines Mr. Bazin. This is also the case for cement additives, which reduce emissions (on average 625 kg of carbon dioxide per tonne).
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