The world's largest cement maker LafargeHolcim, is set to acquire Firestone Building Products (FSBP) – a leader in commercial roofing and building envelope solutions, based in the United States (US) – for $3.4 billion.
"The transaction is to be financed with cash and debt while maintaining net debt below 2x. Synergies of $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 accretive from the first year," read a media statement on Thursday.
The acquisition of FSBP will strengthen LafargeHolcim's biggest market, the US, establishing a new growth profile, reaching $6 billion in annual net sales, the statement added.
Moreover, with this acquisition LafargeHolcim will add 15 manufacturing facilities, 1,800 distribution points and three R&D laboratories to its network.
FSBP brought in roughly $1.8 billion in sales in 2020 and $270 million in earnings before interest, taxes, depreciation, and amortisation.
Upon completion of the sale, FSBP will continue to be headquartered in Nashville, Tennessee, and all 1,900 FSBP employees will transition to LafargeHolcim.
Regarding the massive deal, Jan Jenisch, CEO of LafargeHolcim said, "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," she added.
Paolo Ferrari, CEO & COO of Bridgestone Americas President, the parent of company of FSBP, said, "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."
Taylor Cole, president of FSBP said, "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, FSBP is a business unit of Bridgestone Americas and part of Tokyo-based Bridgestone Corporation, a global leader providing tires and sustainable mobility solutions.