- Transaction completes Owens Corning’s previously announced
strategic review of the business
- Strengthens Owens Corning’s focus on residential and commercial
building products in North America and Europe
- Enhances Praana Group’s existing advanced materials and
composites business through the addition of Owens Corning’s glass
reinforcements business
Owens Corning (NYSE: OC), a residential and commercial building
products leader, and Praana Group, an India-based holding group
that operates a diverse portfolio of companies primarily serving
the industrial sector, announced today that they have signed a
definitive agreement for the sale of Owens Corning’s glass
reinforcements business to Praana Group (through its subsidiaries)
at an enterprise value of $755,000,000. This sale is a part of
Owens Corning’s strategic plan to reshape the company to focus on
residential and commercial building products in North America and
Europe.
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Owens Corning’s glass reinforcements business, part of the
company’s Composites segment, manufactures, fabricates, and sells
glass fiber reinforcements for a wide variety of applications in
wind energy, infrastructure, industrial, transportation, and
consumer markets. The business generated revenue of approximately
$1.1 billion in 2024 and has approximately 4,000 employees across a
global footprint that includes 18 operations in 12 countries.
Brian Chambers, Owens Corning Chair and Chief Executive Officer,
stated, “After a comprehensive review of strategic alternatives,
the Owens Corning Board concluded that a sale of the business to
the Praana Group supports the company’s strategic plan and results
in the greatest overall value to its shareholders. I want to thank
the glass reinforcements team for their continued focus on
operating safely, delivering high-quality products, and helping
customers win and grow in the market.
“This transaction strengthens Owens Corning as a focused, more
capital-efficient building products leader in North America and
Europe. The combination of today's announcement, along with the
strategic initiatives and investments we have made over the past
several years, positions us to drive profitable growth and deliver
strong cash generation to maximize long-term shareholder value,"
concluded Chambers.
Vishal Goenka, Vice Chairman of Praana Group, and Anuj Goenka,
Executive Board Member of Praana Group, said, “The glass fiber
reinforcement business is highly competitive and is poised for
growth in the medium to long run, especially on account of the
global push towards adoption of clean energy, reduction of carbon
footprint, and material substitution. This strategic acquisition
will grow our footprint in glass reinforcements with new
geographies, broaden the scope of our operations, and enhance our
ability to deliver solutions that contribute to global efforts for
a more sustainable and efficient future. It will also strengthen
Praana Group’s competitiveness and operational efficiencies in
glass fiber reinforcements for composites for the industrial
sector.”
Vishal Shah, Executive Director and Global Head of M&A for
Praana Group, added, “Praana has a long track record of acquiring
carve-outs and establishing them as thriving, independent
companies. We are highly enthusiastic about the acquisition of
Owens Corning’s glass reinforcements business and believe it
represents a great opportunity to implement our transformational
growth strategy.”
The sale will complete Owens Corning’s review of strategic
alternatives for the business announced in early 2024. The
transaction is expected to close in 2025 and is subject to
customary regulatory approvals and other conditions.
Owens Corning will retain the other businesses within its
Composites segment. These include the company’s vertically
integrated glass nonwovens business that supports its Roofing
segment and other building products customers, along with its
structural lumber business. Going forward, these businesses will
operate within Owens Corning’s Roofing segment. Owens Corning’s two
glass melting plants in the U.S., which provide glass fibers to
make nonwovens products, will operate and be integrated within its
Insulation segment.
About Owens Corning
Owens Corning is a residential and commercial building products
leader committed to building a sustainable future through material
innovation. Our products provide durable, sustainable,
energy-efficient solutions that leverage our unique capabilities
and market-leading positions to help our customers win and grow. We
are global in scope, human in scale with more than 25,000 employees
in 31 countries dedicated to generating value for our customers and
shareholders and making a difference in the communities where we
work and live. Founded in 1938 and based in Toledo, Ohio, USA,
Owens Corning posted 2023 sales of $9.7 billion. For more
information, visit www.owenscorning.com.
About Praana Group
Established in 1956, Praana Group is an India-based
multinational engaged in operating a global portfolio of
manufacturing facilities in the fields of specialty chemicals
(Sterling Specialty Chemicals, Galata Chemicals, Artek Surfin
Chemicals) and glass fiber & composite materials (3B
Fibreglass). Our innovative solutions and high-quality products
cater to a wide range of industries like construction, textiles,
automotive, home & personal care, energy and industrial
markets. Our philosophy revolves around a growth mindset,
sufficient capitalization for contingencies, and a relentless
commitment to sustainability standards. For more information, visit
www.praana.com.
Forward-Looking Statements
In this press release, statements that are not reported
financial results or other historical information are “forward
looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements give
current expectations or forecasts of future events. These
statements can be identified by words such as “anticipate,”
“estimate,” “expect,” “intend,” and variations of negatives of such
terms or variations thereof. Forward-looking statements by their
nature address matters that are, to different degrees, uncertain,
such as statements regarding the sale of the glass reinforcements
business (the “Transaction”), including statements regarding the
expected timing and structure of the Transaction. All such
forward-looking statements are based upon current plans, estimates,
expectations and ambitions that are subject to risks,
uncertainties, assumptions and other factors, many of which are
beyond the control of Owens Corning, that could cause actual
results to differ materially from the results projected in such
forward-looking statements. These risks, uncertainties, assumptions
and other factors include, without limitation: the risk that the
parties may not be able to satisfy the conditions to the
Transaction in a timely manner or at all; risks related to
obtaining required regulatory or other third-party approvals and
consents; risks related to the completion of an internal
reorganization to separate the glass reinforcements business from
Owens Corning’s retained businesses; levels of residential and
commercial or industrial construction activity; demand for our
products; industry and economic conditions including, but not
limited to, supply chain disruptions, recessionary conditions,
inflationary pressures, interest rate and financial markets
volatility, and the viability of banks and other financial
institutions; availability and cost of energy and raw materials;
competitive and pricing factors; relationships with key customers
and customer concentration in certain areas; our ability to achieve
expected synergies, cost reductions and/or productivity
improvements; changes to tariff, trade or investment policies or
laws; issues related to acquisitions, divestitures and joint
ventures or expansions; climate change, weather conditions and
storm activity; legislation and related regulations or
interpretations, in the United States or elsewhere; domestic and
international economic and political conditions, policies or other
governmental actions, as well as war and civil disturbance;
uninsured losses or major manufacturing disruptions, including
those from natural disasters, catastrophes, pandemics, theft or
sabotage; environmental, product-related or other legal and
regulatory liabilities, proceedings or actions; research and
development activities and intellectual property protection; issues
involving implementation and protection of information technology
systems; foreign exchange and commodity price fluctuations; our
level of indebtedness; our liquidity and the availability and cost
of credit; the level of fixed costs required to run our business;
levels of goodwill or other indefinite-lived intangible assets;
price volatility in certain wind energy markets in the U.S.; levels
of global industrial production; loss of key employees and labor
disputes or shortages; defined benefit plan funding obligations;
and factors detailed from time to time in the company’s Securities
and Exchange Commission filings. The information in this news
release speaks as of February 14, 2025, and is subject to change.
The company does not undertake any duty to update or revise
forward-looking statements except as required by federal securities
laws. Any distribution of this news release after that date is not
intended and should not be construed as updating or confirming such
information.
Owens Corning Company News / Owens Corning Investor Relations
News
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250214371130/en/
Owens Corning Contacts Media Inquiries: Megan
James 419.348.0768
Investor Relations: Amber Wohlfarth 419.248.5639
Praana Group Contacts Media Inquiries: Deepa
Viswanath +91 9833325758
Investor Relations: Tanmaya Goenka 484.627.3050
Owens Corning (NYSE:OC)
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