US$3.4 billion purchase for LafargeHolcim
By Andy Brown11 January 2021
LafargeHolcim has signed an agreement to acquire commercial roofing and building envelope solutions company Firestone Building Products (FSBP) for US$3.4 billion.
FSBP is based in the US and in 2020 had net sales of approximately US$1.8 billion and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of US$270 million.
Jan Jenisch, LafargeHolcim CEO, said, “I am excited to be entering the highly attractive roofing business. 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.”
LafargeHolcim says that the purchase will strengthen its position in the US and that it expects FSBP to continue to grow and reach US$6 billion in annual net sales. In the future LafargeHolcim aims to globalise the business, leveraging its European and Latin American footprint.
Urbanisation trends are said to be accelerating the development of the flat roof market, currently estimated at around US$50 billion globally.
With this acquisition LafargeHolcim will add 15 manufacturing facilities, 1,800 distribution points, and three R&D laboratories to its network. Upon completion of the sale, FSBP will continue to be headquartered in Nashville, Tennessee, US, and all 1,900 FSBP employees will transition to LafargeHolcim.