LafargeHolcim will be able to fund half of the $3.4 billion price for Firestone Building Products from its existing cash position, Chief Executive Jan Jenisch said on Thursday.
LafargeHolcim Emerges From Messy Merger With U.S. Deal
Bloomberg 1/7/2021 Leonard Kehnscherper
(Bloomberg) LafargeHolcim Ltd. is buying Bridgestone Corp.’s Firestone Building Products unit for $3.4 billion as the cement behemoth turns the page on years of restructuring that followed its creation in 2015.
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The transaction will expand LafargeHolcim into the roofing business in the U.S., its largest market, Chief Executive Officer Jan Jenisch said in a statement Thursday. The company also aims to broaden the asset’s reach to Europe and Latin America.
Jenisch, hired in 2017 to clean up the botched Swiss-French merger of Holcim Ltd. and Lafarge SA, had to slash costs and sell assets in Southeast Asia to salvage the transaction. The ex-CEO of chemical and roofing-membrane maker Sika AG is now returning to his earlier stomping ground and pitting LafargeHolcim against his former employer in some markets.
Buyer will keep HQ here, plans other deals
Bridgestone Americas executives have agreed to sell their building products division, which employs 1,900 people and last year rang up about $1.8 billion in sales, to a fellow global conglomerate for $3.4 billion.
Switzerland-based LafargeHolcim, which employs 70,000 people around the world, will fund its deal for Firestone Building Products with cash and debt and plans to close on the transaction in the second quarter, according to a release. Firestone Building Products last year produced EBITDA of $270 million and runs 15 factories that make cool roofs, insulation and waterproofing systems, among other things. Its goods are distributed through 1,800 sites, and the business also runs three research and development centers.
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NASHVILLE, Tenn. Bridgestone Americas Inc. has reached an agreement to divest its Firestone Building Products unit. LafargeHolcim Ltd. will pay $3.4 billion to acquire the business, which provides commercial roofing and building envelope solutions throughout the U.S.
In a statement, Paolo Ferrari, Bridgestone Americas CEO, president and chief operating officer, said the strategic divestment of this unit will allow Nashville-based Bridgestone to better focus on its core tire and mobility businesses. This transaction will create new growth opportunities for Firestone Building Products and allow Bridgestone to focus its resources to further invest in the company s tire business and rapidly growing mobility solutions business, Ferrari said.
LafargeHolcim to Acquire Firestone Building Products from Bridgestone Americas
Acquiring industry leader in commercial roofing and building envelope solutions to position it for continued growth
A milestone in the transformation of LafargeHolcim to become the global leader in innovative and sustainable building materials and solutions
Strengthening LafargeHolcim s biggest market, the US, with annual sales to exceed USD 6bn
Plans to expand in Europe and Latin America to become the global leader in flat roofing systems
Sale to enable Bridgestone to strengthen investments in company s tire business and fast-growing mobility solutions business
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LafargeHolcim (Paris:LHN) has signed an agreement to acquire Firestone Building Products (FSBP), a leader in commercial roofing and building envelope solutions based in the United States (US), with 2020 (est.) net sales of USD 1.8 billion and EBITDA of USD 270 million. This acquisition is a milestone in LafargeHolcim s tra