Saint-Gobain Acquires FOSROC for $1.02 Billion
French glass and building firm Saint-Gobain on Thursday said that it has entered into an agreement to acquire Dubai-based FOSROC, a leading privately owned global construction chemicals player, for $1.02 billion in cash.
The purchase price represents 7.1x of Forsoc’s combined earnings for the next three years, including expected cost savings and additional earnings. The transaction is expected to close in the first half of 2025 subject to regulatory approvals.
The acquisition is part of Saint-Gobain’s plans to expand its construction chemicals business in the Middle East, India, and the Asia-Pacific region. Saint-Gobain took over the France-based Chryso in 2021.
Saint-Gobain views the FOSROC acquisition as a complementary move to its regional chemicals business. The French-based company is expected to generate $91 million in EBITDA this year.
Following the acquisitions of Chryso, and additional acquisitions of 34 companies since 2021, the latest move is a new strategic step in establishing Saint-Gobain’s worldwide presence in construction chemicals, which will have combined sales of $6.63 billion across 73 countries following the acquisition.
FOSROC is a global construction chemicals player with a strong geographic footprint in India, the Middle East and Asia-Pacific in particular. The company is expected to generate $487 million of sales and to achieve an EBITDA margin of 18.7% in 2024.
With 20 manufacturing plants and around 3,000 employees, FOSROC provides a wide range of technical solutions for the construction industry, including admixtures and additives for concrete and cement, adhesives and sealants, waterproofing solutions, concrete repair solutions and flooring, Sain Gobain said in a statement on Thursday.
Unique Opportunity
The acquisition provides a unique opportunity, fully aligned with Saint-Gobain’s strategy to strengthen its worldwide presence in construction chemicals, supported by solid macroeconomic factors including the transition towards low-carbon concrete. It will complement the Group’s worldwide growth platform in construction chemicals.
It is also a highly complementary geographic profile strengthening Saint-Gobain’s presence in high-growth emerging markets, notably India and the Middle East.
FOSROC’s positions in the Middle East and Asia perfectly complement Chryso’s positions mostly in Europe, Turkey and Africa and GCP’s in North America, Latin America and Asia-Pacific. FOSROC is a leading player in India, one of the most attractive countries in construction chemicals worldwide with growth supported by an ambitious infrastructure plan for the coming decades.
The integration will be led by Thierry Bernard, CEO of Construction Chemicals, with the experienced team who developed the Chryso business over many years, managed its integration within Saint-Gobain and who has piloted its successful combination with GCP since 2022, providing a high level of confidence in the integration of FOSROC.
Aligned with Strategic Plan
Sain-Gobain’s Chairman and CEO Benoit Bazin said that acquiring FOSROC was perfectly aligned with their “Grow & Impact” strategic plan. It is a unique opportunity for Saint-Gobain to further reinforce its worldwide presence in construction chemicals, and to strengthen its presence in high-growth emerging markets, in particular in India and the Middle East, he said.
“The combination of the two groups will allow us to expand our profitable growth platform in construction chemicals. I am looking forward to warmly welcoming the FOSROC teams into the Group and I am very confident about the combination of our joint forces,” he added.
FOSROC Chairman Jim Hay said that the acquisition marked the beginning of a new chapter in the history of FOSROC and his company’s focus on delivering the best solutions and satisfaction to its customers has enabled them to become a leading player in construction chemicals.
FOSROC CEO Rob Bonnici said that the opportunity to join Saint-Gobain, worldwide leader in light and sustainable construction and a global player in construction chemicals is the perfect next step to enhance their offer by leveraging Saint-Gobain’s innovation and technology in construction chemicals.
