French construction material manufacturer Saint-Gobain acquired plasterboard producer Continental Building Products for $1.4 billion. Saint-Gobain said the acquisition would boost its earnings and profile in the U.S. market.
Continental Building Products is projected to generate revenue of approximately $510 million in 2019. Saint-Gobain said Continental Building Products geographically complements its existing North American operations, and enables the company to grow in the eastern and southeastern parts of the U.S.
“This is an exciting day for Continental Building Products, our shareholders, customers, and employees and represents the culmination of the hard work of our highly talented workforce,” Continental Building Products chairman Edward Bosowski and CEO Jay Bachmann said in a joint statement. “Saint-Gobain is the ideal strategic partner with the resources to support our development, commitment to operational excellence and global platform that will enable us to continue to provide outstanding customer service.”
Saint-Gobain expects cost synergies by the end of the third year following the close of the transaction. The company expects the synergies to be recognized once Saint-Gobain’s North American gypsum business integrates Continental Building Products’ operations.
Saint-Gobain is the parent company of CertainTeed and the company designs, manufactures, and distributes materials across the globe. The company generated $41.8 billion in sales in 2018 and operates in 68 countries.
