French materials company Saint-Gobain has signed a definitive agreement to acquire Ovniver Group, a privately-owned chemical company in Mexico, for $815m.
The group has lines in façade coatings, tile adhesives, waterproofing and mortars, among other products. It is expected to generate revenues of $285m a year, and has had a growth rate of around 20% over the past five years.
Saint-Gobain says the deal will strengthen its presence in the Central American market, which is worth more than $1.5bn and is experiencing double-digit growth.
The all-cash deal extends a series of acquisitions that the French company has made in the past few years (see further reading). This is aimed at creating a network of construction chemicals businesses extending over 76 countries.
Benoit Bazin, Saint-Gobain’s chief executive, said the deal was aligned with the company’s “grow and impact” strategy. He said: “I am very impressed with Ovniver’s leadership, strategy and outstanding growth development, as well as the team’s track record of excellent execution.”
Saint-Gobain employs 160,000 people, three-quarters of them outside France. It has sales of about €48bn and a pre-tax profit of some €7bn.
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