LafargeHolcim has signed an agreement to acquire Firestone Building Products (FSBP), a leader in commercial roofing and building envelope solutions based in the United States (US), with 2020 (est.) net sales of US$1.8 billion and EBITDA of US$270 million. This acquisition is a milestone in LafargeHolcim’s transformation to become a global leader in innovative and sustainable building solutions.
This transaction is valued at US$3.4 billion, to be financed with cash and debt while maintaining net debt below 2x. Synergies of US$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 (EPS) accretive from the first year.
Jan Jenisch, LafargeHolcim CEO, says, “I am excited to be entering the highly attractive roofing business. With Firestone Building Products we are strengthening our biggest market, the US, while also building a global growth and innovation platform for the company. Today’s milestone is a strategic leap on our journey to become the global leader in innovative and sustainable building solutions, to build a world that works for people and the planet. I have great respect for the high-calibre leadership and expertise of the Firestone Building Products’ team and look forward to welcoming them into the LafargeHolcim family.”
Paolo Ferrari, Bridgestone Americas President, CEO & COO: “This transaction will create new growth opportunities for Firestone Building Products and allow Bridgestone to focus its resources to further invest in the company’s tire business and rapidly growing mobility solutions business. Like Bridgestone, LafargeHolcim is a global company with a strong financial position and thriving culture. We know they will take great care of our Firestone Building Products employees and customers, and ensure the business enjoys growth and success for many years to come.”
Taylor Cole, Firestone Building Products President: “Today is a big moment for the Firestone Building Products team as we look forward to becoming part of the global leader in building materials and solutions. Together, we are in a prime position to accelerate our growth by combining Firestone Building Products’ advanced technologies and know-how with LafargeHolcim’s global scale and reach.”
Founded in 1980, Firestone Building Products (FSBP) is a business unit of Bridgestone Americas and part of Tokyo-based Bridgestone Corporation, a leader providing tyres and sustainable mobility solutions that create social and customer value. The acquisition of FSBP will strengthen LafargeHolcim’s biggest market, the US, establishing a new growth profile, reaching US$6 billion in annual net sales. Building on FSBP’s strong organic growth, LafargeHolcim expects to accelerate its leadership through cross-selling opportunities and further bolt-on acquisitions. LafargeHolcim also aims to swiftly globalise the business, leveraging its European and Latin American footprint.
Urbanisation trends are accelerating the development of the flat roof market, currently estimated at around US$50 billion globally. By entering this attractive new business, LafargeHolcim will deliver above-market growth, driven by innovative technologies and branding. It will also benefit from FSBP’s position in the high-growth repair and refurbishment segment, accounting for the majority of its sales today.
With up to 60% of buildings’ energy lost through roofs, FSBP plays an instrumental role in mitigating this process, with its industry-leading technologies, including cool roofs, insulation and waterproofing systems. In addition, its green roofs contribute to more sustainable urban environments. These technologies complement LafargeHolcim’s sustainable building solutions, from its ECOPact green concrete to its EcoLabel range, accelerating the company’s net zero commitment. With this acquisition LafargeHolcim will add 15 manufacturing facilities, 1800 distribution points, and three R&D laboratories to its network. Upon completion of the sale, FSBP will continue to be headquartered in Nashville, Tennessee, and all 1900 FSBP employees will transition to LafargeHolcim.
Read the article online at: https://www.worldcement.com/the-americas/07012021/lafargeholcim-to-acquire-firestone-building-products-from-bridgestone-americas/