COURBEVOIE, France — Saint-Gobain has entered into a definitive agreement for the acquisition of Building Products of Canada Corp., a privately owned manufacturer of residential roofing shingles and wood fiber insulation panels in Canada, for C$1,325 million (approximately $1.1 billion (€925 million)) in cash.
With this acquisition, Saint-Gobain reinforces its leadership in light and sustainable construction in the Canadian market. With Building Products of Canada, Saint-Gobain will be well positioned to better serve Canadian customers, to whom it will bring a broader innovative and sustainable range of solutions.
- Building Products of Canada completes Saint-Gobain’s offering of Exterior Solutions in Canada with Roofing solutions, following the addition of Siding solutions thanks to the group’s acquisition of Kaycan in 2022;
- The acquisition complements CertainTeed Canada’s existing operations and leadership in Interior Solutions (gypsum, insulation, ceilings).
The purchase price represents a multiple (before synergies) of approximately 11.9x Building Products of Canada’s 2022 EBITDA of C$111 million and an acquisition multiple of approximately 8.2x when including run-rate synergies of approximately C$50 million.
The acquisition meets the Group’s strategic and financial criteria articulated in its “Grow & Impact” plan:
- Strengthening the Group’s leadership in North America as well as enriching our offering in light and sustainable construction;
- Value creation by year 3 following the closing of the transaction;
- Maintaining a strong balance sheet with a limited impact of +0.1x on net debt to EBITDA and with leverage remaining below the target set (1.5x to 2.0x).
Closing of the transaction is subject to customary conditions and is expected by year-end 2023.
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