SAINT-GOBAIN SIGNS A
DEFINITIVE AGREEMENT TO ACQUIRE
The BAILEY Group Companies to
complement its offer
for light construction in canada
Saint-Gobain announces that it
has entered into a definitive agreement for the acquisition of The
Bailey Group Companies ("Bailey") -
consisting of Bailey-Hunt Limited and its subsidiaries - a
privately owned manufacturer of metal building solutions for
light construction in Canada,
for C$880
million (approximately €600 million)
in cash.
Bailey is a leading player in metal framing in
Canada with C$532 million of sales
in the country and
17.2% EBITDA
margin in 2023. With a 75-year
history, Bailey has 12 manufacturing plants across Canada and
around 700 employees with a well-recognized brand thanks to its
best-in-class customer service, expertise and technical
capabilities. Bailey has been a long-standing partner of
Saint-Gobain for metal ceiling grids, frames
and
fasteners.
In many countries,
metal framing is
already an important part of Saint-Gobain's solution
offer for light
construction, since it
is commonly used for interior solutions
(hand-in-hand with plasterboard, insulation and ceilings) as well
as for exterior solutions (with siding and
roofing).
With this acquisition, Saint-Gobain
will further reinforce its offer
in light and sustainable construction in the attractive Canadian
market, and will be well positioned to better serve Canadian
customers, to whom it will bring a comprehensive range of solutions
offering sustainability and performance, thanks to innovative
installation systems improving productivity and ergonomics on
construction sites. Bailey will enrich
Saint-Gobain's full-range offer for both interior and exterior
solutions (following the
acquisitions of Kaycan in siding in 2022 and Building Products of
Canada in roofing in 2023).
The purchase price represents a
multiple (before synergies) of approximately 9.6x Bailey's
2023 EBITDA of
C$91.3 million and a multiple of approximately 7.5x when including
run-rate synergies of approximately C$26 million in year
3.
The acquisition is a
further step in the Group's "Grow
& Impact" strategic plan and
meets its financial criteria:
1) Strengthening Saint-Gobain's offer in North
America in light and
sustainable construction with a long-standing partner that
provides confidence in a smooth integration thanks to a similar
culture and shared values;
2) Value creation by year 3 following the
closing of the transaction and EPS (Earnings Per Share) accretive
from year 1: significant synergy opportunities are estimated at C$26 million by year
3, including
cost synergies of C$21 million (procurement, industrial performance
improvement and SG&A cost optimization) and sales synergies of
C$5 million thanks to the completion of Saint-Gobain's full-range
offer for light construction in Canada;
3) Maintaining a
strong balance sheet with
net debt to EBITDA remaining below the target (1.5x to 2.0x)
including the recently announced CSR Limited
acquisition.
The acquisition will be fully
financed in cash. Closing of the transaction is subject to
customary conditions and expected in the second half of
2024.
Analyst/Investor Conference Call on April 3, 2024 at 6:30 pm
Paris time
Dial-in: +33
1 70 91 87 04 or +44 12 1281 8004 or +1 718 705 8796
Please dial in 5 to 10 minutes prior
to the scheduled start time.
Replay: +39 02 802 0987 then press
700726# and 726# from 9:00 pm Paris time until May 3,
2024.
A
presentation will be available before the conference call on
Saint-Gobain's website at: https://www.saint-gobain.com/en/finance/financial-events
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About Saint-Gobain
Worldwide leader in light and sustainable
construction, Saint-Gobain designs, manufactures and distributes
materials and services for the construction and industrial markets.
Its integrated solutions for the renovation of public and private
buildings, light construction and the decarbonization of
construction and industry are developed through a continuous
innovation process and provide sustainability and performance. The
Group's commitment is guided by its purpose, "MAKING THE WORLD A
BETTER HOME".
€47.9 billion in sales in
2023
160,000 employees, locations in 76
countries
Committed to achieving net zero carbon emissions by
2050
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Analyst/investor
relations
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Press
relations
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Patricia
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Floriana
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Laure
Bencheikh:
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Alix
Sicaud:
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+33 1 88
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Yanice
Biyogo:
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+33
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James
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54 01 24
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For more information about Saint-Gobain,
visit www.saint-gobain.com
and follow us on X @saintgobain