Stmt.re Acquisitions in 2000
Compagnie de Saint-Gobain
29 March 2001
Saint-Gobain's acquisitions in 2000:
Expenditure of EUR 2.9 billion for additional sales of EUR 6 billion.
The purpose of this press release is to recapitulate the acquisitions (not
including buybacks of Compagnie de Saint-Gobain stock) carried out by the Group
in 2000, particularly those which were not specifically announced at the time.
The sales figures provided below are based on estimated full-year data for 2000.
In 2000 the Saint-Cobain group vigorously pursued its external growth strategy,
acquiring over the course of the year more than 100 companies, representing full
year sales of EUR 6 billion, for a total outlay of EUR 2.9 billion (excluding
EUR 72 million in expenditure on securities carried out by Essilor before
Saint-Gobain sold its stake in the company).
In line with the strategy defined by the Group, the bulk of these acquisitions
(91%) was in the high-growth areas of Building Materials Distribution, on the
one hand, and Ceramics & Plastics, Abrasives and Reinforcements on the other.
The Group issued press releases to announce the largest of these acquisitions in
2000, namely the following:
- Meyer, Raab Karcher, Mercader, and Telhanorte, leading groups in
distribution of building materials to professionals in the United Kingdom,
Germany, Spain and Brazil, respectively;
- In Ceramics & Plastics, Chemfab, the global reference point for glass
fabrics coated with fluoropolymers. In the same division, Holz Precision
Inc., a leader in engineering and manufacturing of precision-machined and
complex assemblies for the semiconductors industry;
- In Building Materials, the roofing business of Celotex, a manufacturer of
asphalt-covered shingles used as roofing on American houses.
- In the Pipe division, the pipes business of the British group Biwater.
The following is a review of all of the acquisitions of the period, by division:
Building Materials Distribution: acquisitions of EUR 2,100 million for
additional sales of EUR 5,310 million).
The large-scale acquisitions for which announcements were made (Meyer, Raab
Karcher, Mercader and Telhanorte) allowed the Division to become the European
leader in distribution of building materials and attain the no.2 position in
Brazil, an emerging and fast-growing market. The Division also, acquired smaller
regional operators, particularly in France, representing sales of about EUR 288
million, at a total cost of EUR 77 million.
France:
The Point P group carried out more than 20 bolt-on acquisitions in France,
adding more than EUR 150 million to its full-year sales. The main companies
involved were Depot Service Carrelage, a distributor of tiles and other floor
coverings, Tarmac, which sells ready-mixed concrete, Sofilro, specialized in
kitchens, bathrooms and central heating, Mari, a wholesaler of building
materials and DIY and gardening supplies, Guyot et Soba, a timber and panelling
trader. Point P also acquired several broad-based wholesalers, including Tordo,
Comptoir Audomarois, Maeschler & Matter, Letulle, Giaccardi, BSCB, Morel. These
bolt-on acquisitions should rapidly allow synergies, to arise and improve Point
P's quality of service at the regional level.
United Kingdom:
Drawing upon the Point P business model, the Meyer group began to implement a
strategy of local-market development, by acquiring World's End Tiles Ltd, a
distributor of upmarket tiles with annual sales of EUR 23 million.
Netherlands:
Raab-Karcher acquired De Waardt, the third largest building materials group in
the Netherlands, and became the market leader in the country. Sales: EUR 115
million.
Ceramics & Plastics and Abrasives: acquisitions of EUR 445 million for
additional sales of EUR 359 million.
The acquisitions of Chemfab and Holz Precision Inc, which were both announced,
brought EUR 250 million in annual sales. They strengthened the Division's
presence in two high-potential technical fields: glass fabrics coated with
engineered polymers, which supplement High-Performance Plastics operations;
assemblies and advanced manufacturing services for semiconductors, which broaden
the offerings of the Advanced Ceramics business line. The Division also gained
positions in several technical niche segments in Europe (mainly the United
Kingdom) and in the U.S., through the following transactions:
In Ceramics & Plastics:
- Saphikon (United States) manufactures products in monocrystalline
sapphire, particularly intended for electronic optics applications,
which are complementary with the offerings of the Saint-Gobain Quartz
range. Sales: EUR 14 million.
- Norwood Coated Products (United States), a manufacturer of foam and
adhesives for the medical, electronics, automobile and building
sectors. The company was brought into the Saint-Cobain Performance
Plastics business line. Sales: EUR 17.2 million.
- Magic Manufacturing Inc (United States), a producer of precision-machined
complex parts for integrated circuit manufacturing. This acquisition
strongly complements that of Holz Precision, making Saint-Cobain one of
the leading suppliers of these cutting-edge systems. Sales: EUR 53 million.
- Eta Process Plants Ltd (United Kingdom), specialized in manufacturing
plastic, metal or ceramic filler media for mass transfer columns used
in the petrochemical industry. Sales. EUR 9 million.
In Abrasives:
- Raising of the Group's stake in the Polish company Korund to 97%,
following a first acquisition of 51% at the end of 1999. Located in
Kolo, to the west of Warsaw, Korund SA is Poland's leading producer of
abrasives. The Division's leadership position in Europe has been bolstered
by the addition of this very competitive company, offering low costs and an
extensive product range. Sales: EUR 16 million.
Insulation and Reinforcements: acquisitions of EUR 115 million, for
additional sales of EUR 106 million
In Insulation:
The Group acquired two small companies with specialized skills that can bring
added value to some of the products the Division markets in Europe:
- Asbiro Prefab BV (Netherlands) transforms and markets mineral wool
insulation products. Sales: EUR 8 million.
- Benken AG and Lignoform Produktions und Vertriebs AG (Switzerland)
manufactures noise insulation products in wood and laminate.
Sales: EUR 4.5 million.
In Reinforcements:
The Division continued to pursue its strategy of development towards downstream
and processing applications. The key acquisitions of the year were:
- BTI (United States), manufacturing non-woven complexes used mainly in
boat hulls and for refrigerated transport. Sales: EUR 38.5 million.
- Purchase of the glassfiber mats business of Celotex. Sales: EUR 34 million,
- Syncoglas (Belgium), specialized in fabrics and flat reinforcements,
particularly for use in wind turbines. Sales: EUR 21 million.
Flat Class (expenditure on securities of EUR 41 million, of which EUR 14
million giving rise to additional sales of EUR 15 million)
- The Division's expenditure on securities included, on the one hand, the
raising of its equity interests in Korea (where Hankuk Glass Industry and
Hankuk Sekurit Limited are now 33%- and 66%-owned, respectively) and on the
other bolt-on acquisitions aimed at strengthening regional positions in
processing and distribution of flat glass for the building industry. The
main local acquisitions were Portaglas in Spain, with sales of EUR 8 million
and GVI in Montpellier, France, with sales of EUR 7.5 million.
Building Materials (expenditure on securities of EUR 121 million, of which
EUR 89 million giving rise to additional sales of EUR 144.4 million)
- The Division's main transaction was the acquisition of the roofing
business of the U.S. company Celotex, specialized in the manufacturing of
asphalt-covered shingles. This purchase, adding to the acquisition of
GS-Roofing in 1999, has raised Saint-Gobain to the no.2 position for roofing
products in the U.S. market. Sales: EUR 144.4 million.
- The Division also bought out, in May 2000, the remaining 20% stake in
Quartzolit - market leader for mortars and glues in Brazil.
Pipe (acquisitions of EUR 66 million, for additional sales of EUR 142 million)
In addition to the acquisition of Biwater Industries, representing sales of EUR
98 million, which was announced, the Division rounded out its specialized
distribution networks for piping products in Spain and Germany:
- Saniplast SL (Spain), based in northwestern Spain, with six outlets.
Sales: EUR 26 million.
- Leysser (Germany) - Sales: EUR 18 million.
March 29, 2001.
Investor Relations Department
Tel.: Florence TRIOU-TEXEIRA +33 1 47 62 45 19 -
mailto: florence.triou@saint-gobain.com
Tel.: Lounis BEKKAT +33 147 62 32 36 -
mailto: lounis.bekkat@saint-gobain.com
Fax: +33 147 62 50 62