Saint-Gobain Acquires The Bailey Group to Expand Light Construction Offerings in Canada

Saint-Gobain has announced its acquisition of The Bailey Group Companies, a prominent metal building solutions manufacturer for light construction in Canada, for C$880 million in cash. This acquisition includes Bailey-Hunt Limited and its subsidiaries, thereby significantly enhancing Saint-Gobain’s position in the Canadian light construction market.

Bailey, known for its metal framing products, reported C$532 million in sales and a 17.2% EBITDA margin in 2023. The company has established a strong footprint in Canada with 12 manufacturing plants and approximately 700 employees. Its long-standing partnership with Saint-Gobain focuses on supplying metal ceiling grids, frames, and fasteners.

This strategic move is aligned with Saint-Gobain’s “Grow & Impact” plan and is expected to create value and be EPS accretive from the first year following the transaction's close. Anticipated synergies are estimated at C$26 million by year 3, reinforcing Saint-Gobain’s comprehensive range of offerings for both interior and exterior solutions in the light and sustainable construction segment in Canada.

The acquisition is financed entirely in cash and is expected to close in the second half of 2024, pending customary closing conditions. Saint-Gobain aims to maintain a strong balance sheet, with the net debt to EBITDA ratio remaining below its target range.