PARIS--()--Saint-Gobain signed an agreement for the sale of its U.S.-based PVC Pipe & Foundations business to North American Pipe Corporation, a subsidiary of Westlake Chemical Corporation (NYSE:WLK) of Houston, Texas, for a total price (enterprise value) of US$175 million (around €135 million), representing 7.2 times 2012 EBITDA (US$24 million). Manufactured by Saint-Gobain’s Exterior Products Division within the Construction Products Sector and marketed under the CertainTeed brand, these polyvinyl chloride pipes and fittings are used in various agricultural and industrial applications. The business employs close to 200 people and has two production sites in the United States, in Lodi, California and McPherson, Kansas.
With this divestiture, Saint-Gobain’s Exterior Products Division is contributing to Saint- Gobain’s strategic refocusing on the Habitat market. CertainTeed, with its insulation, wallboard, roofing, siding and ceilings products designed specifically for North American homes and buildings, will then be fully focused on the construction market (especially residential), allowing it to fully benefit from the further upturn in this market.
The sale proceeds will be used primarily to pursue the Group’s acquisition strategy, focused on small- or medium-sized acquisitions.
This transaction is expected to close in the 2nd quarter of 2013, subject to standard closing conditions including US regulatory review.
Saint-Gobain, the world leader in the habitat and construction markets, designs, manufactures and distributes building materials, providing innovative solutions to the challenges of growth, energy efficiency and environmental protection. With 2012 sales of €43.2 billion, Saint-Gobain operates in 64 countries and has nearly 193,000 employees. For more information about Saint-Gobain, visit www.saint-gobain.com.
About Westlake Chemical
Westlake Chemical is a manufacturer and supplier of petrochemicals, polymers and building products. The company’s range of products includes: ethylene, polyethylene, polypropylene, styrene, caustic, VCM, PVC resin and PVC pipe, windows and fence. For more information about Westlake Chemical, visit www.westlake.com.