LafargeHolcim acquires Firestone Building Products for $3.4 billion
January 12, 2021 By Rock to Road
LafargeHolcim acquired Firestone Building Products from Japan’s Bridgestone Corporation. LafargeHolcim paid $3.4 billion for the acquisition.
Firestone Building Products (FSBP) is based in the U.S. and had net sales of almost $1.8 billion USD and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) $270 million USD.
This transaction is valued at USD 3.4 billion, to be financed with cash and debt while maintaining net debt below 2x. Synergies of USD 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 (EPS) accretive from the first year.
“I am excited to be entering the highly attractive roofing business. With Firestone Building Products we are strengthening our biggest market, the U.S., 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-calibre leadership and expertise of the Firestone Building Products’ team and look forward to welcoming them into the LafargeHolcim family,” said Jan Jenisch, LafargeHolcim CEO.
Paolo Ferrari, Bridgestone Americas President, CEO and COO, said the transaction will create new growth opportunities for the company.
“Like Bridgestone, LafargeHolcim is a global company with a strong financial position and thriving culture. We know they will take great care of our Firestone Building Products employees and customers, and ensure the business enjoys growth and success for many years to come,” said Ferrari.
Urbanization trends are accelerating the development of the flat roof market, currently estimated at around USD 50 billion globally. By entering this new business, LafargeHolcim will deliver above-market growth, driven by innovative technologies and branding. It will also benefit from FSBP’s position in the high-growth repair and refurbishment segment, accounting for the majority of its sales today.
“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,” said Taylor Cole, Firestone Building Products president.
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