Saint-Gobain To Acquire GCP Applied Technologies In $2.3 Bln Cash Deal – Quick Facts

French building materials firm Saint-Gobain (CODGF.PK) Monday said it has entered into a definitive agreement to acquire GCP Applied Technologies, a specialty construction chemicals company, for $32.00 per share in cash. The transaction is valued at approximately $2.3 billion or about 2.0 billion euros.

The Boards of Directors of both companies have unanimously approved the deal.

Closing of the transaction is subject to GCP shareholders’ approval, antitrust approvals and satisfaction of other customary closing conditions; it is expected to close by year-end 2022.

The agreed upon price represents a premium of 39% above the volume-weighted average price per GCP share for the 30-trading days ended on November 30

GCP Applied generates around $1.0 billion revenues, 50 manufacturing plants in 38 countries and employs around 1,800 people.

The deal is expected to create value by year 3 following the closing of the transaction and earnings per share accretive from year 1.

The company said the acquisition would strengthen its position worldwide in construction chemicals with total sales of more than 4 billion euros, up from 3 billion euros.

The acquisition meets the Group’s strategic and financial criteria articulated during the Capital Markets Day of October 6, 2021.

Benoit Bazin, Chief Executive Officer of Saint-Gobain, said, “The acquisition of GCP is an excellent and significant step for Saint-Gobain to further reinforce its worldwide leadership in construction chemicals and strengthen its geographic presence in North America and emerging markets, both objectives being at the core of our “Grow & Impact” strategic plan.”

In the transaction, Lazard and Citi are acting as financial advisors, and Freshfields Bruckhaus Deringer LLP is acting as legal counsel to Saint-Gobain.

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