CertainTeed, a subsidiary of Saint-Gobain, has acquired all outstanding shares of Herndon, Va.-based plasterboard provider Continental Building Products for $1.4 billion, or $37.00 per share.
Continental Building Products employs 645 people and is expected to generate revenues of approximately $510 million in 2019. Its North American markets complement Saint-Gobain’s North American presence, and provide strong growth opportunities for Saint-Gobain in the South and Southeast.
“The acquisition of Continental Building Products enables Saint-Gobain to become a leading provider of gypsum wallboard and construction solutions across the US and Canada,” says Mark Rayfield, CEO of CertainTeed and Saint-Gobain North America. “Continental Building Products complements our existing building products portfolio, while delivering excellent operational performance, a robust supply chain and exceptional focus on the customer.”
Beyond geographic expansion, the acquisition is set to broaden the scope of Saint-Gobain’s product asset portfolio, supported by Continental Building Products’ plasterboard platform and Saint-Gobain’s R&D and development infrastructure. The pairing also creates an opportunity for approximately $50 million in cost synergies and improvement, expected by the end of the third year following close, resulting from the companies’ integration.
“This is an exciting day for Continental Building Products, our shareholders, customers and employees and represents the culmination of the hard work of our highly talented workforce,” says Edward Bosowski, chairman of Continental Building Products, and Jay Bachmann, CEO. “Saint-Gobain is the ideal strategic partner with the resources to support our development, commitment to operational excellence and global platform that will enable us to continue to provide outstanding customer service.”
The combination has been unanimously approved by the Board of Directors of Saint-Gobain and Continental Building Products’ Board of Directors.
