Saint-Gobain strengthens its partnership with El Volcan in Latin America

Saint-Gobain strengthens its partnership with El Volcan in Latin America 1
This transaction enables Saint-Gobain to strengthen its partnership with the El Volcan group by extending it into two new Latin American markets.

LONDON: Saint-Gobain and the El Volcan group have signed an agreement covering their operations in Peru (mortars and plasterboard) and in Argentina (plaster and plasterboard), together representing approximately €60 million in sales, 6 plants and 450 employees.

This transaction enables Saint-Gobain to strengthen its partnership with the El Volcan group by extending it into two new Latin American markets. In each of these countries, the Group will thus be able to unlock significant synergies, helping to sharpen its competitive edge and enhance its commercial offer for the region’s construction markets, as it has already successfully done in Chile, Columbia and Brazil.

In Peru, Saint-Gobain will purchase El Volcan Soluciones Constructivas (around €20 million in sales), a company specialized in the production and sale of plasterboard.

After this new entity has been merged with SG Productos para la Construccion, which specializes in the production and sale of mortars and has been wholly owned by the Saint-Gobain Group since December 2019, Saint-Gobain will retain a 55% stake in the new consolidated group and will sell the remaining 45% to the El Volcan group.

In Argentina, El Volcan will purchase from Saint-Gobain a 45% stake in the group including Tuyango, the historical plaster business, and Aswell, the plasterboard business acquired in the first quarter of 2019, with Saint-Gobain owning a 55% stake in this Argentine gypsum group.

This transaction is not subject to conditions and is expected to be finalized in January 2021.

Saint-Gobain designs, manufactures and distributes materials and solutions which are key ingredients in the wellbeing of each of us and the future of all. They can be found everywhere in our living places and our daily life: in buildings, transportation, infrastructure and in many industrial applications.

They provide comfort, performance and safety while addressing the challenges of sustainable construction, resource efficiency and climate change.

www.saint-gobain.com

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