Zug, Switzerland – Construction materials and products group LafargeHolcim is to acquire Firestone Building Products (FBP) from Bridgestone, in a deal valued at $3.4 billion (€2.8 billion), the companies announced 7 Jan.
US-based FBP is a supplier of roofing and building products with 2020 sales of around $1.8 billion and earnings (EBITDA) of $270 million.
The deal “will strengthen LafargeHolcim’s biggest market, the US, establishing a new growth profile, reaching $6 billion in annual net sales,” the LafargeHolcim stated.
LafargeHolcim will gain 15 manufacturing plants and three R&D laboratories. FBP will continue to be headquartered in Nashville, Tennessee, and all 1,900 employees will transition to the new owner.
The Swiss buyer expects annual synergies of $110 million from the deal within two years of completion – expected in the second quarter.
As well as leveraging opportunities for cross-selling and bolt-on acquisitions, LafargeHolcim also aims “to swiftly globalise the business, leveraging its European and Latin American footprint.”
“We are strengthening our biggest market, the US, while also building a global growth and innovation platform,” said LafargeHolcim CEO Jan Jenisch.
According to Jenisch, LafargeHolcim is “excited to be entering the highly attractive roofing market” – particularly the $50-billion global flat roof market.
For Paolo Ferrari, Bridgestone Americas president, CEO & COO, the sale will create new growth opportunities for FBP and allow Bridgestone to focus resources… [on its] tire business and rapidly growing mobility solutions business.”