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| CREATE THE WORLD LEADER IN BUILDING INTERIOR SOLUTIONS |
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THE EDITORIAL OF JEAN-LOUIS BEFFA, CHAIRMAN AND CEO |
 We have been considering a merger with BPB for approximately 10 years. After the diversification into distribution with Poliet, the problems associated with asbestos prevented us from acquiring any further debt. As this issue is set to be resolved, we are now in a position to go through with this strategic acquisition.
So it is with great satisfaction that we have reached an agreement on a price that enabled BPB’s Board of Directors to recommend the offer to its shareholders. The price is certainly higher than that in our initial bid, but nonetheless justified by BPB’s higher- than-expected prospects for growth.
Above all, this association results in the creation of the world’s leading interior building solutions group!
Indeed, there is exceptional synergy between our Insulation activity and BPB. This synergy is becoming increasingly evident as a greater number of products combining glass wool and plasterboard, especially noise insulating partitions, appear on the market.
We therefore expect to benefit from approximately 100 million euros (117 million U.S. dollars) from this synergy within two years. This acquisition also brings high margins and significant free cash flow, extends Saint-Gobain’s presence in multi-regional markets, and is a remarkable opportunity for speeding up our Company’s growth. As the two businesses are present in all the major nations of the world, we will be able to reorganize the headquarters and logistics services. In emerging countries, one team will easily be able to represent all these activities. There is a single objective at stake in this: fully capitalize on the considerable potential of Saint-Gobain and BPB.
Jean-Louis Beffa
Chairman and CEO
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