LONDON, UK: French construction giant Saint-Gobain announced on Wednesday that it has agreed to acquire CSR Limited, a leading Australian building products company, for A$9.00 per share in cash, valuing the deal at A$4.5 billion (c. €2.7bn).
The acquisition will give Saint-Gobain a strong foothold in the attractive Australian construction market, which is driven by a growing population and demand for light and sustainable solutions. CSR has a portfolio of well-known brands in interior and exterior products, 30 manufacturing plants, and around 2,500 employees.
Saint-Gobain said the deal is fully aligned with its vision as the worldwide leader in light and sustainable construction, and will strengthen its presence in the fast-growing markets of Asia-Pacific. The company expects to create value and boost its earnings per share from the first year after closing the transaction, which is expected in the second half of 2024.
The deal also includes CSR’s property business, which is planned to be monetized in the short to mid-term for a value of at least A$1.3bn, and an indirect minority stake (~25%) in an aluminium business, on which Saint-Gobain will explore its options going forward.
The offer price represents a 33% premium over CSR’s average share price in the month before the announcement, and a multiple of 7.9x on CSR’s building products earnings before interest, taxes, depreciation and amortization (EBITDA) for the fiscal year ending March-2024, including synergies of A$60 million.
The boards of both companies have unanimously approved and recommended the deal, which is subject to CSR’s shareholders’ approval, regulatory approvals and other customary conditions.
Benoit Bazin, Chief Executive Officer of Saint-Gobain, commented: “I am delighted to announce the acquisition of CSR that represents a decisive step for Saint-Gobain to establish a leading presence in the high-growth Australian construction market. It is fully aligned with our “Grow & Impact” strategy and our vision for worldwide leadership in light and sustainable construction.
We have admired CSR for many years and have successfully worked together as partners. I am very impressed with CSR’s leadership, the quality of the strategy, and the team’s excellent execution of that strategy. The combination of our joint forces is a fantastic opportunity: Saint-Gobain will bring significant value to CSR by leveraging our expertise on the various core segments of CSR’s operations for the benefit of its customers.
I look forward to soon welcoming into our Group all CSR employees, and to continuing the success story in Australia and New Zealand. I am very confident that this transaction will result in enhanced growth and value creation for Saint-Gobain shareholders and provide attractive opportunities for both teams.”
Saint-Gobain to buy Australian building materials firm, CSR Limited for A$9 per share
