Saint-Gobain has signed a definitive agreement to buy Kaycan, a producer and distributor of exterior building materials in Canada and in the US, for $928m in cash.
With this deal, Saint-Gobain aims to strengthen its position in light and sustainable construction by becoming a leading siding products provider in Canada and expanding its vinyl offering with complementary solutions including aluminum and engineered wood across the US.
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The deal is anticipated to close by end of this year following antitrust approvals and satisfaction of other customary closing conditions.
Kaycan is an exterior building materials provider with $472m in revenues, of which over 50% is generated in Canada and the rest in the US.
It has 12 manufacturing plants, of which nine are in Canada.
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The company also employs around 1,300 people.
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By GlobalDataIn Canada, Saint Gobain achieved sales of C$750m. It provides gypsum, insulation, ceilings and roofing solutions in the country.
This deal is expected to create value by year three following completion of the transaction. The synergy opportunities are estimated at around $30m by year three.
Saint-Gobain will fund the deal through cash on its balance sheet.
Saint-Gobain cchief executive officer Benoit Bazin said: “The acquisition of Kaycan is an excellent step for Saint-Gobain and I am very enthusiastic to warmly welcome the Kaycan teams into the Group. Not only does this acquisition allow us to strengthen our presence in siding both in Canada and in the United States, but it also allows us to broaden our offering into the exciting growth areas of aluminum and engineered wood siding, largely made with recycled materials and thus helping to drive the circular economy ecosystem in construction. It is perfectly aligned with the “Grow & Impact”.
In May, Saint-Gobain announced a $100m expansion of its CertainTeed roofing facility in Peachtree City, Georgia, US.
During the same month, the company also made a $28m investment in its ADFORS technical textile products facility in Dublin, Georgia, US, a move that would create 400 jobs over the next two years.
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Image: Saint-Gobain reported €44.2bn n sales in 2021. Credit: Mao06/commons.wikimedia.org.
