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.