Saint-Gobain, the French multinational construction materials manufacturer, has agreed to acquire Fosroc, a British producer of construction chemicals with global reach.
The €960 million (approx. £813 million) cash deal will mark Saint-Gobain’s 36th acquisition since 2021, taking its worldwide combined construction chemicals sales to €6.2 billion (approx. £5.25 billion) across 73 countries.
Morgan Stanley is acting as financial adviser, and Freshfields is acting as legal counsel to Saint-Gobain.
Fosroc has a strong geographic footprint in India, the Middle East and Asia-Pacific, with 20 manufacturing plants and around 3,000 employees.
It provides a range of technical solutions for the construction industry, including admixtures and additives for concrete and cement, adhesives and sealants, waterproofing solutions, concrete repair solutions and flooring.
The business is expected to achieve an EBITDA margin of 18.7 per cent this year.
The transaction is subject to regulatory conditions and is expected to close in the first half of next year.
Saint-Gobain CEO, Benoit Bazin, said: “The acquisition of Fosroc is perfectly aligned with our ‘Grow & Impact’ strategic plan: it is a unique opportunity for Saint-Gobain to further reinforce its worldwide presence in construction chemicals, and to strengthen its presence in high-growth emerging markets, in particular in India and the Middle East.
“I am very impressed with Fosroc’s leadership, its strategy and its impressive development, as well as the team’s track record of excellent execution and profitable growth.
“The combination of the two groups will allow us to expand our profitable growth platform in construction chemicals.
“I am looking forward to warmly welcoming the Fosroc teams into the group and I am very confident about the combination of our joint forces.”
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