Date:- June 13, 2023
The acquisition is anticipated to produce synergies worth roughly C$50m by the third year.
Environmentally friendly building practises Construction Products of Canada, a maker of residential roofing shingles and wood fibre insulation panels, has agreed to be acquired by Saint-Gobain. With this acquisition, Saint-Gobain will have a stronger market presence in Canada for sustainable and light construction. It will help the company to expand there offering of exterior solution and also enhancing its current inside solutions business.The deal meets Saint-Gobain’s financial and strategic requirements, adding value within three years, and upholding a strong balance sheet. Saint-Gobain with three manufacturing sites, Building Products of Canada employs over 460 employees. The business has a significant market share in asphalt shingle roofing and provides a wide selection of external building goods. It is sold through a variety of channels, such as specialty distribution and home centre shops.
With the acquisition, the company will be able to offer a complete line of roofing goods and increase its offering of green building solutions. By the third year, the transaction is anticipated to generate considerable synergies worth roughly C$50 million. This includes cost synergies from purchasing materials, putting Saint-Gobain’s “World Class Manufacturing” strategy into practise, and lowering freight and logistical expenses. Cross-selling opportunities and the broadening of product lines are two additional ways that sales synergies are predicted. This is an important and logical step for Saint-Gobain, allowing us to establish a leading position in roofing in Canada.
This purchase strengthens Saint-Gobain position in North America and builds on the company multiple demonstrated accomplishments in this region over the last four years. It is exactly in line with the company ‘Grow & Impact’ strategy. Building Products of Canada and Saint-Gobain teams will benefit from it in a number of ways, including how it will increase the group’s prospects for profitable growth, improve the company solutions’ ability to serve customers, and give considerable value to shareholders. In the event that certain customary criteria are met, the deal is anticipated to close by the end of the year.