Saint-Gobain’s Acquisitions In 2006

The purpose of this press release is to provide an update on the acquisitions carried out by the Group in 2006, and particularly those which were not specifically announced at the time.

The Saint-Gobain Group pressed ahead with its bolt-on acquisitions in 2006, mainly in the Building Distribution and Construction Products sectors (around 85%). More than 35% of the financial investment was made in emerging countries, and this area now accounts for 14% of consolidated sales.

Flat Glass: Financial investment of €14 million

The main transaction in the Flat Glass business was the buyout of minority interests in Nanjing SG Hanglas Inc based in China. As this company was already fully consolidated by the Group in 2005, there is no additional contribution to sales from this 2006 investment.

The other transaction in this sector was the Avancis joint venture with Shell to produce new-generation photovoltaic panels. Estimated sales for the joint venture are not included in this press release, as its business will begin upon launch of construction work on a plant in Germany.

High-Performance Materials (HPM): Financial investment of €6 million for additional estimated full-year sales of €4 million

This investment relates to the acquisition of Orient Abrasives in India.

Construction Products (CP): Financial investment of €142 million for additional estimated full-year sales of €222 million

Insulation, Gypsum and Mortars

- Izocam, no. 1 supplier of insulation products in Turkey with five plants, in conjunction (50/50) with the Kuwaiti group Alghanim Industries (2006 estimated sales: €125 million)

- Tylon in South Africa (2006 estimated sales: €20 million)

- Iggam, Argentine manufacturer of plaster and mortars (2006 estimated sales: €21 million)

- UCPI Pyramid in France, manufacturer of special plaster

- Novacalce, Italian-based mortars manufacturer

- CM Gyspo, Algerian company engaged in gypsum extraction

Pipe – Disaplast and the Larrondo group, Spanish pipe distributors (2006 estimated sales: €45M€).

Building Distribution: Financial investment of €355 for additional estimated full-year sales of €630 million.

As a result of the 54 acquisitions in 2006, 141 new outlets were added to the Building Distribution network, in addition to the 126 new points of sale created through organic growth. The business gained a foothold in four new countries: Argentina, Belgium, Lithuania and Portugal, via the integration of BPB’s distribution business.

France – 22 acquisitions (31 sales outlets), representing total full-year estimated sales of €87 million

- 10 specialised distributors, including Centhermeco (tiling) and Clanet (production and distribution of ready-to-use concrete)

- 12 general distributors, including Fettig in the Charente-Maritime region, IFMEC - PASCO in the Morbihan region, Dismat in Perpignan and Matériaux de Pérignat in Clermont-Ferrand.

United Kingdom and the Republic of Ireland – 4 acquisitions (32 sales outlets), representing total estimated full-year sales of €204 million

JP Corry, a general distributor, in Northern Ireland and the Republic of Ireland represented the largest contribution to sales.

Three other transactions were carried out in this region: Connells Building Supplies, a general distributor based in Ipswich, Simmons Builders Merchants Ltd, a general distributor operating out of Nottingham and the specialist distributor AB Plumbing Supplies in the Birmingham area.

Nordic countries – 19 acquisitions (38 sales outlets), representing total estimated full-year sales of €174 million

- 12 specialised distributors including the Ventistal group (manufacturer of ventilation products in Norway), Tm Bergersen (specialised in bathrooms and tiling in Norway), Kakel-specialisten (supplier of tiling in Sweden) and Isene Jordan (timber specialist near Oslo)

- 7 general distributors, including Byggros AS (central Norway), A. Lonseth AS (Norway) and Ekboms Group (six sales outlets in Sweden)

Other countries – 9 acquisitions (40 sales outlets), representing total estimated full-year sales of €165 million

The main transactions were carried out in the following countries:

Belgium – Jans, supplier of interior building solutions in Belgium, with 6 sales outlets providing nationwide coverage

Spain – 4 acquisitions including Eumat and Jorda Torrents, general distributors operating in the Barcelona area and Vera Meseguer in the Murcia region

Argentina – Barugel Azulay, distributor of construction materials and bathroom-tiling-kitchens in the state of Buenos Aires, with 12 stores

Poland – Cortina, regional distributor of tiling in northern and eastern Poland, with 9 sales outlets

Packaging: Financial investment of €67 million

The main transaction in the Packaging business was carried out in Chile, with the acquisition of a 51% controlling interest in BO Glass Containers SA. This company is building a wine bottle plant in the south of the country, which has been funded by this financial investment. The plant is due to come into operation in 2007.

The other transactions were the buyout of minority interests in the Russian companies acquired in 2005.

600450 Saint-Gobain’s Acquisitions In 2006

Others also read

Tecnoglass to Purchase Minority Stake in Saint-Gobain’s Existing Colombia-Based Float Glass Operation.
The 462 Meter Tall Lakhta Tower is St. Petersburg’s Newest Landmark.
Super Sky and The Daylighting Specifics that Matter
A bright future is ahead for glass, thanks to a serious focus on innovation, the environment, and sustainability, the industry’s annual prestige awards ceremony at the Millennium Gallery in Sheffield heard. (Thurs 22 November).
Let’s re-live the event highlights together.
Saint-Gobain has approved the most important operation planned in Europe, which will be carried out over the next two years.

From industry

Add new comment