Saint Gobain to acquire Fosroc in a USD 1 bn transaction

French glass and building materials manufacturer Saint Gobain acquired Dubai-based construction chemicals company Fosroc for USD 1 bn, a press release (pdf) reads. The purchase price represents 7.1x of Forsoc’s combined earnings for the next three years, including expected cost savings and additional earnings. The transaction is expected to close in 1H 2025, subject to regulatory approvals, according to the statement.

The rationale: The acquisition represents Saint Gobain’s interest in expanding its construction chemicals business in the Middle East, India, and the Asia-Pacific region. Having acquired Menat-based chemicals company Chryso back in 2021, Saint Gobain views the Fosroc acquisition as a complementary move to its regional chemicals business, the statement reads. The French-based company is expected to generate USD 91 mn in EBITDA.

Advisors: Morgan Stanley is the transaction’s financial advisor, and Freshfields is providing legal counsel to Saint-Gobain.