Saint-Gobain Expands in Construction Chemicals with Acquisition of Fosroc

Saint-Gobain has signed a definitive agreement to acquire Fosroc, a major player in global construction chemicals, for $1,025 million in cash. This move follows previous acquisitions of Chryso in 2021 and GCP in 2022, enhancing Saint-Gobain’s presence in construction chemicals worldwide. Post-acquisition, Saint-Gobain's construction chemicals division aims to achieve sales of €6.2 billion across 73 countries.

Fosroc, with a strong foothold in India, the Middle East, and Asia-Pacific, is expected to generate $487 million in sales with an EBITDA margin of 18.7% for 2024. Fosroc operates 20 manufacturing plants and employs around 3,000 people, offering solutions for concrete and cement admixtures, adhesives, sealants, waterproofing, concrete repair, and flooring.

The acquisition, at 11.3x Fosroc’s projected 2024 EBITDA before synergies, will be financed in cash. The transaction is expected to close in the first half of 2025, subject to customary conditions. The move aligns with Saint-Gobain's strategic plan to strengthen its market presence and leverage synergies estimated at $54 million by the third year post-acquisition.