- Acquiring industry leader in commercial roofing and building
envelope solutions to position it for continued growth
- A milestone in the transformation of LafargeHolcim to become
the global leader in innovative and sustainable building materials
and solutions
- Strengthening LafargeHolcim’s biggest market, the US, with
annual sales to exceed USD 6bn
- Plans to expand in Europe and Latin America to become the
global leader in flat roofing systems
- Sale to enable Bridgestone to strengthen investments in
company’s tire business and fast-growing mobility solutions
business
Regulatory News:
LafargeHolcim (Paris:LHN) has signed an agreement to acquire
Firestone Building Products (FSBP), a leader in commercial roofing
and building envelope solutions based in the United States (US),
with 2020 (est.) net sales of USD 1.8 billion and EBITDA of USD 270
million. This acquisition is a milestone in LafargeHolcim’s
transformation to become the global leader in innovative and
sustainable building solutions.
This transaction is valued at USD 3.4 billion, to be financed
with cash and debt while maintaining net debt below 2x. Synergies
of USD 110 million per year are expected on a run-rate basis within
two years of closing, which is expected in the second quarter. The
acquisition is earnings per share (EPS) accretive from the first
year.
Jan Jenisch, LafargeHolcim CEO: “I am excited to be entering the
highly attractive roofing business. With Firestone Building
Products we are strengthening our biggest market, the US, while
also building a global growth and innovation platform for the
company. Today’s milestone is a strategic leap on our journey to
become the global leader in innovative and sustainable building
solutions, to build a world that works for people and the planet. I
have great respect for the high-caliber leadership and expertise of
the Firestone Building Products’ team and look forward to welcoming
them into the LafargeHolcim family.”
Paolo Ferrari, Bridgestone Americas President, CEO & COO:
“This transaction will create new growth opportunities for
Firestone Building Products and allow Bridgestone to focus its
resources to further invest in the company’s tire business and
rapidly growing mobility solutions business. Like Bridgestone,
LafargeHolcim is a global company with a strong financial position
and thriving culture.
We know they will take great care of our Firestone Building
Products employees and customers, and ensure the business enjoys
growth and success for many years to come.”
Taylor Cole, Firestone Building Products President: “Today is a
big moment for the Firestone Building Products team as we look
forward to becoming part of the global leader in building materials
and solutions. Together, we are in a prime position to accelerate
our growth by combining Firestone Building Products’ advanced
technologies and know-how with LafargeHolcim’s global scale and
reach.”
Founded in 1980, Firestone Building Products (FSBP) is a
business unit of Bridgestone Americas and part of Tokyo-based
Bridgestone Corporation, a global leader providing tires and
sustainable mobility solutions that create social and customer
value. The acquisition of FSBP will strengthen LafargeHolcim’s
biggest market, the US, establishing a new growth profile, reaching
USD 6 billion in annual net sales. Building on FSBP’s strong
organic growth, LafargeHolcim expects to accelerate its leadership
through cross-selling opportunities and further bolt-on
acquisitions. LafargeHolcim also aims to swiftly globalize the
business, leveraging its European and Latin American footprint.
Urbanization trends are accelerating the development of the flat
roof market, currently estimated at around USD 50 billion globally.
By entering this attractive new business, LafargeHolcim will
deliver above-market growth, driven by innovative technologies and
branding. It will also benefit from FSBP’s position in the
high-growth repair and refurbishment segment, accounting for the
majority of its sales today.
With up to 60% of buildings’ energy lost through roofs, FSBP
plays an instrumental role in mitigating this process, with its
industry-leading technologies, including cool roofs, insulation and
waterproofing systems. In addition, its green roofs contribute to
more sustainable urban environments. These technologies complement
LafargeHolcim’s sustainable building solutions, from its ECOPact
green concrete to its EcoLabel range, accelerating the company’s
net zero commitment. With this acquisition LafargeHolcim will add
15 manufacturing facilities, 1,800 distribution points, and three
R&D laboratories to its network. Upon completion of the sale,
FSBP will continue to be headquartered in Nashville, Tennessee, and
all 1,900 FSBP employees will transition to LafargeHolcim.
Additional information
Presentation
A presentation of the acquisition with further details is
available on our website at www.lafargeholcim.com
Analyst and Media Conference
An analyst and media conference will be held on Thursday, January 7th at 08:30am CET. Participants
may pre-register and will receive dedicated Dial-in details to
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ABOUT LAFARGEHOLCIM
As the world’s global leader in building solutions,
LafargeHolcim is reinventing how the world builds to make it
greener and smarter for all. On its way to becoming a net zero
company, LafargeHolcim offers global solutions such as ECOPact,
enabling carbon-neutral construction. With its circular business
model, the company is a global leader in recycling waste as a
source of energy and raw materials through products like Susteno,
its leading circular cement. Innovation and digitalization are at
the core of the company’s strategy, with more than half of its
R&D projects dedicated to greener solutions. LafargeHolcim’s
70,000 employees are committed to improving quality of life across
more than 70 markets through its four business segments: Cement,
Ready-Mix Concrete, Aggregates and Solutions & Products. More
information is available on www.lafargeholcim.com
ABOUT Bridgestone
Americas
Nashville, Tennessee-based Bridgestone Americas, Inc. is a
subsidiary of Bridgestone Corporation, a global leader providing
sustainable mobility and advanced solutions. Bridgestone Americas
develops, manufactures and markets a diverse portfolio of original
equipment and replacement tires, tire-centric solutions, mobility
solutions, and other rubber-associated and diversified products
that deliver social value and customer value. Guided by its global
corporate social responsibility commitment, Our Way to Serve,
Bridgestone is dedicated to shaping a sustainable future of
mobility and improving the way people move, live, work and
play.
ABOUT Firestone Building
Products
Firestone Building Products Company, LLC is a leading
manufacturer and supplier of trusted roofing and building envelope
solutions. By taking the entire building envelope into
consideration, Firestone Building Products meets individual
customer and project needs for roofing, wall and lining solutions.
Headquartered in Nashville, Tennessee, the company also offers
outstanding technical services, an international network of roofing
contractors, distributors and field sales representatives, and
exceptional warranty protection. Products include commercial
roofing systems, roofing accessories, green roofing systems and
daylighting systems, vegetative roofing systems, metal wall panels,
insulation, cavity wall construction, pond liners, geomembranes and
silicone and acrylic liquid coatings. Firestone Building Products
Company, LLC is a subsidiary of Bridgestone Americas, Inc.
Important disclaimer – forward-looking statements:
This document contains forward-looking statements. Such
forward-looking statements do not constitute forecasts regarding
results or any other performance indicator, but rather trends or
targets, as the case may be, including with respect to plans,
initiatives, events, products, solutions and services, their
development and potential. Although LafargeHolcim believes that the
expectations reflected in such forward-looking statements are based
on reasonable assumptions as at the time of publishing this
document, investors are cautioned that these statements are not
guarantees of future performance. Actual results may differ
materially from the forward-looking statements as a result of a
number of risks and uncertainties, many of which are difficult to
predict and generally beyond the control of LafargeHolcim,
including but not limited to the risks described in the
LafargeHolcim's annual report available on its website
(www.lafargeholcim.com) and uncertainties related to the market
conditions and the implementation of our plans. Accordingly, we
caution you against relying on forward-looking statements.
LafargeHolcim does not undertake to provide updates of these
forward-looking statements.
This document contains inside information within the meaning of
the Market Abuse Regulation (EU) (No 596/2014).
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