Saint-Gobain's acquisitions in 2001
Saint-Gobain's acquisitions in 2001:
Expenditure of EUR 412 million for additional sales of more than EUR 850 million
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 2001,
particularly those which were not specifically announced at the time. The sales
figures provided below are based on estimated full-year data for 2001.
In 2001, the Group continued to pursue its external growth strategy, through more
than 60 acquisitions, most of them small-scale operations in the high-growth
businesses of Building Materials Distribution on the one hand and Ceramics &
Plastics, Abrasives and Reinforcements on the other. These acquisitions represented
an aggregate investment in securities of EUR 412 million, with enterprise value of
EUR 402 million since the net cash acquired totaled EUR 10 million, for additional
full-year sales of EUR 854 million.
The Group also bought out almost all minority interests in some of its listed
subsidiaries, for a total expenditure of EUR 345 million. These operations concerned
the Spanish subsidiary Saint Gobain Cristalería (for EUR 231 million) and the three
listed Brazilian subsidiaries (for EUR 114 million).
In line with the Group's development strategy, the majority of these acquisitions
concerned the high-growth businesses of Building Materials Distribution and
Ceramics and Composites. Investment in these two areas totaled EUR 323 million, for
additional sales of EUR 776 million.
· Building Materials Distribution: acquisitions of EUR 192 million for additional
annual sales of EUR 660 million
In 2001, the Division continued its external growth through 46 bolt-on acquisitions in
France, the United Kingdom and Germany.
2
France:
The Point.P group carried out 35 external growth operations, adding EUR 272
million to its full-year sales. In particular, Point.P strengthened its coverage of
southeastern France by acquiring Matériaux Réunis, a network of 30 outlets selling a
broad range of building materials. The company enjoys an excellent reputation and
has an annual sales volume of EUR 107 million.
Point.P also acquired the following companies, which added 65 sales outlets:
- several general distributors (total sales acquired: EUR 75 million),
including SPC (Paris area), Vinets Matériaux and Bétons Champenois
(central France), Verney (region of Lyon), and Sud Ouest Matériaux
Penquerch (southwest);
- specialized distributors (total acquired sales: EUR 90 million), such as
Brill, dealing with ceilings, insulation and partitions; Hubert,
specialized in hardware, carpentry, wood and paneling (northern
France); Sevegrand, a distributor of plumbing equipment in the Paris
area and BCCDL, a producer of ready-mixed concrete in the southwest.
United Kingdom:
Drawing upon the Point.P business model, Saint Gobain Building Distribution
carried out several bolt-on acquisitions in the United Kingdom. Of the six companies
purchased in 2001, the four largest were Archibald and Matthew Charlton, two
general distributors, and Cakebread Robey and Nixon Knowles, specialized
respectively in heating and bathroom supplies, and in wood and paneling. These
four companies, which represent sales of EUR 108 million, have been integrated into
the Group's two distribution networks in the United Kingdom, Jewson as the general
distributor, and Graham as the plumbing and heating specialist.
Germany and Central Europe:
Raab Karcher acquired Keramundo, the leading German distributor of ceramic tiles
with 52 sales outlets and sales of EUR 230 million. This operation was rounded out
by the takeover of another specialized ceramic tiles trader, Geldmacher. Still in
Germany, Roha, Menke and Kulb & Diers, three specialized distributors of
materials for heavy construction also joined the fold.
In the Czech Republic, Raab Karcher bought the BayWa group's building materials
distribution network, which includes 10 outlets.
In all, Raab-Karcher's acquisitions added EUR 280 million to its sales.
3
· Ceramics and Composites: acquisitions of EUR 131 million for additional
annual sales of EUR 116 million
In Ceramics & Plastics:
The Division continued to bolster its positions, focusing mainly on specialty
products.
Its principal acquisitions included Mox-Med Inc., a U.S. based manufacturer of
silicone elastomers mainly for the healthcare industry, with annual sales of EUR 20
million, and Jinzhou in China, a producer of quartz for the semiconductor industry.
In Saudi Arabia, the Division set up a joint venture with Obeikan to produce coated
fabrics (part of the High-Performance Plastics business), intended particularly for the
market of large-format advertising displays.
The Division also took full control of its previously equity-accounted U.S. subsidiary
Norton Alcoa Proppants, in which it already held a 50% interest. This company,
which was renamed Norton Proppants Inc., produces ceramic pellets for oil and gas
well fracturing. Its annual sales amount to EUR 70 million.
The total sales acquired by the division came to EUR 90 million.
In Abrasives, the Group acquired Merit, an abrasives manufacturer with operations
in California and Mexico, and annual sales of EUR 26 million.
In Reinforcements, the Group kept up its development in Asia, by acquiring an 80%
stake in the Chinese company Hanghzou.
· Historical businesses: investments of EUR 89 million, of which EUR 37 million
gave rise to additional annual sales of EUR 78 million.
Among the historical businesses, only the Flat Glass, Insulation and Pipe divisions
pursued acquisitions in 2001. As required by the strategic focuses defined by the
Group, these operations were designed to extend the reach of these historical
businesses in emerging countries and/or in downstream operations.
Flat Glass: EUR 57 million in acquisitions of investments, of which EUR 14 million
gave rise to additional sales of EUR 27 million.
In China, the Division acquired Yong Xin Glass, which manufactures microwave
oven trays.
In France, it performed two bolt-on acquisitions in processing and distribution of flat
glass for the building industry, with Pradel and AMS. In the United Kingdom, it
purchased the assets of Art Glass, also in the field of processing for the building
industry.
The Division also bought out the minority interests in its Mexican subsidiary SG
Glass Mexico (previously 80%-owned and fully consolidated), and increased to 40%
its interest in the Korean company Hankuk Glass Industry, previously accounted for
by the equity method and now proportionally consolidated.
Insulation: EUR 21 million in acquisitions of investments, of which EUR 17 million
gave rise to additional sales of EUR 21 million.
4
The Division's main investment consisted in acquiring API, a company specialized in
metallic frames for suspended ceilings.
Pipe: EUR 11 million in acquisitions of investments, of which EUR 6 million gave
rise to additional sales of EUR 30 million.
The Division's main investment consisted in acquiring Sebold (annual sales: EUR 30
million), which allowed it to extend its German distribution network for publicworks
pipes.
March 28, 2002
Investor Relations Department
Expenditure of EUR 412 million for additional sales of more than EUR 850 million
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 2001,
particularly those which were not specifically announced at the time. The sales
figures provided below are based on estimated full-year data for 2001.
In 2001, the Group continued to pursue its external growth strategy, through more
than 60 acquisitions, most of them small-scale operations in the high-growth
businesses of Building Materials Distribution on the one hand and Ceramics &
Plastics, Abrasives and Reinforcements on the other. These acquisitions represented
an aggregate investment in securities of EUR 412 million, with enterprise value of
EUR 402 million since the net cash acquired totaled EUR 10 million, for additional
full-year sales of EUR 854 million.
The Group also bought out almost all minority interests in some of its listed
subsidiaries, for a total expenditure of EUR 345 million. These operations concerned
the Spanish subsidiary Saint Gobain Cristalería (for EUR 231 million) and the three
listed Brazilian subsidiaries (for EUR 114 million).
In line with the Group's development strategy, the majority of these acquisitions
concerned the high-growth businesses of Building Materials Distribution and
Ceramics and Composites. Investment in these two areas totaled EUR 323 million, for
additional sales of EUR 776 million.
· Building Materials Distribution: acquisitions of EUR 192 million for additional
annual sales of EUR 660 million
In 2001, the Division continued its external growth through 46 bolt-on acquisitions in
France, the United Kingdom and Germany.
2
France:
The Point.P group carried out 35 external growth operations, adding EUR 272
million to its full-year sales. In particular, Point.P strengthened its coverage of
southeastern France by acquiring Matériaux Réunis, a network of 30 outlets selling a
broad range of building materials. The company enjoys an excellent reputation and
has an annual sales volume of EUR 107 million.
Point.P also acquired the following companies, which added 65 sales outlets:
- several general distributors (total sales acquired: EUR 75 million),
including SPC (Paris area), Vinets Matériaux and Bétons Champenois
(central France), Verney (region of Lyon), and Sud Ouest Matériaux
Penquerch (southwest);
- specialized distributors (total acquired sales: EUR 90 million), such as
Brill, dealing with ceilings, insulation and partitions; Hubert,
specialized in hardware, carpentry, wood and paneling (northern
France); Sevegrand, a distributor of plumbing equipment in the Paris
area and BCCDL, a producer of ready-mixed concrete in the southwest.
United Kingdom:
Drawing upon the Point.P business model, Saint Gobain Building Distribution
carried out several bolt-on acquisitions in the United Kingdom. Of the six companies
purchased in 2001, the four largest were Archibald and Matthew Charlton, two
general distributors, and Cakebread Robey and Nixon Knowles, specialized
respectively in heating and bathroom supplies, and in wood and paneling. These
four companies, which represent sales of EUR 108 million, have been integrated into
the Group's two distribution networks in the United Kingdom, Jewson as the general
distributor, and Graham as the plumbing and heating specialist.
Germany and Central Europe:
Raab Karcher acquired Keramundo, the leading German distributor of ceramic tiles
with 52 sales outlets and sales of EUR 230 million. This operation was rounded out
by the takeover of another specialized ceramic tiles trader, Geldmacher. Still in
Germany, Roha, Menke and Kulb & Diers, three specialized distributors of
materials for heavy construction also joined the fold.
In the Czech Republic, Raab Karcher bought the BayWa group's building materials
distribution network, which includes 10 outlets.
In all, Raab-Karcher's acquisitions added EUR 280 million to its sales.
3
· Ceramics and Composites: acquisitions of EUR 131 million for additional
annual sales of EUR 116 million
In Ceramics & Plastics:
The Division continued to bolster its positions, focusing mainly on specialty
products.
Its principal acquisitions included Mox-Med Inc., a U.S. based manufacturer of
silicone elastomers mainly for the healthcare industry, with annual sales of EUR 20
million, and Jinzhou in China, a producer of quartz for the semiconductor industry.
In Saudi Arabia, the Division set up a joint venture with Obeikan to produce coated
fabrics (part of the High-Performance Plastics business), intended particularly for the
market of large-format advertising displays.
The Division also took full control of its previously equity-accounted U.S. subsidiary
Norton Alcoa Proppants, in which it already held a 50% interest. This company,
which was renamed Norton Proppants Inc., produces ceramic pellets for oil and gas
well fracturing. Its annual sales amount to EUR 70 million.
The total sales acquired by the division came to EUR 90 million.
In Abrasives, the Group acquired Merit, an abrasives manufacturer with operations
in California and Mexico, and annual sales of EUR 26 million.
In Reinforcements, the Group kept up its development in Asia, by acquiring an 80%
stake in the Chinese company Hanghzou.
· Historical businesses: investments of EUR 89 million, of which EUR 37 million
gave rise to additional annual sales of EUR 78 million.
Among the historical businesses, only the Flat Glass, Insulation and Pipe divisions
pursued acquisitions in 2001. As required by the strategic focuses defined by the
Group, these operations were designed to extend the reach of these historical
businesses in emerging countries and/or in downstream operations.
Flat Glass: EUR 57 million in acquisitions of investments, of which EUR 14 million
gave rise to additional sales of EUR 27 million.
In China, the Division acquired Yong Xin Glass, which manufactures microwave
oven trays.
In France, it performed two bolt-on acquisitions in processing and distribution of flat
glass for the building industry, with Pradel and AMS. In the United Kingdom, it
purchased the assets of Art Glass, also in the field of processing for the building
industry.
The Division also bought out the minority interests in its Mexican subsidiary SG
Glass Mexico (previously 80%-owned and fully consolidated), and increased to 40%
its interest in the Korean company Hankuk Glass Industry, previously accounted for
by the equity method and now proportionally consolidated.
Insulation: EUR 21 million in acquisitions of investments, of which EUR 17 million
gave rise to additional sales of EUR 21 million.
4
The Division's main investment consisted in acquiring API, a company specialized in
metallic frames for suspended ceilings.
Pipe: EUR 11 million in acquisitions of investments, of which EUR 6 million gave
rise to additional sales of EUR 30 million.
The Division's main investment consisted in acquiring Sebold (annual sales: EUR 30
million), which allowed it to extend its German distribution network for publicworks
pipes.
March 28, 2002
Investor Relations Department