TIDMCOD
RNS Number : 0776Z
Compagnie de Saint-Gobain
08 December 2014
December 8, 2014
Saint-Gobain accelerates the roll-out of its strategy
and announces the plan to acquire a controlling interest in
Sika
and to launch a competitive process for the sale of Verallia
The Group has embarked on a significant reorganization of its
business portfolio:
Saint-Gobain announces the plan to acquire a controlling
interest in Sika, world leader in construction chemicals. The
transaction involves Saint-Gobain's purchase of Schenker Winkler
Holding AG, owner of 16.1% of Sika's capital and 52.4% of its
voting rights, for CHF 2.75 billion (EUR2.3 billion). Following the
acquisition, the Saint-Gobain Group will be able to fully
consolidate Sika in its accounts, leading to a positive impact on
net income as from the first year. Saint-Gobain does not intend to
launch an offer for Sika's remaining shares and has full confidence
in the company to continue developing the business.
Sika employs more than 16,000 people in 84 countries and
reported CHF 5,142 million in sales in 2013 (EUR4.3 billion). Over
the past few years, the company has shown remarkable growth (more
than 8% average annual growth between 2007 and 2013) and capacity
for development in emerging countries (38% of its sales are made in
emerging countries).
Sika is the world leader in construction chemicals and no. 2
worldwide for adhesives and sealants for its industrial
applications. Its products and services draw on extensive
technological expertise in waterproofing, soundproofing, sealing
and bonding, and protecting and reinforcing structures.
Given the proximity of Sika's activities with those of
Saint-Gobain (Construction Products and Innovative Materials as
well as Building Distribution), the deal is expected to generate
EUR100 million in synergies as from the second year (2017), and
EUR180 million per year as from 2019. The deal will create value by
the fourth year.
The transaction is subject to clearance from the competent
anti-trust authorities and is expected to be finalized in the
second half of 2015 at the latest.
Saint-Gobain also plans to launch a competitive process for the
sale of Verallia. Verallia is a world leader in glass packaging,
employs around 10,000 people and has industrial plants in 13
countries. In 2013, Verallia reported sales of EUR2.435 billion
(excluding Verallia North America).
This announcement is the next logical step after the divestment
of the North American business that was finalized in April 2014. A
formal bidding process will be launched based on second-half
earnings - which will represent a clear improvement on the first
half - with the aim of reaching an agreement with a buyer before
summer 2015, once the relevant works councils have been
consulted.
Pierre-André de Chalendar, Chairman and Chief Executive Officer
of Saint-Gobain, said:
"The two transactions - the plan for which we are announcing
today - will accelerate the Group's strategic refocus on the
design, production and distribution of innovative, high-performance
solutions for habitat and industry.
The transactions meet the objectives we announced in November
2013 to raise the growth potential and reduce the capital intensity
of our businesses, increase our presence in emerging countries and
in the US, and expand our range of differentiated products
supported by strong brands.
We are looking forward to working with Sika to enhance the
growth potential of this excellent business."
About Saint-Gobain
Saint-Gobain, the world leader in the habitat and construction
markets, designs, manufactures and distributes building and
high-performance materials, providing innovative solutions to the
challenges of growth, energy efficiency and environmental
protection. With 2013 sales of EUR42 billion, Saint-Gobain operates
in 64 countries and has nearly 190,000 employees. For more
information about Saint-Gobain, please visit www.saint-gobain.com
or download the new "Saint-Gobain Shareholder" application for
tablets and smartphones.
Analyst/Investor Relations Press Relations
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