Saint-Gobain’s acquisitions in 2004
Saint-Gobain’s acquisitions in 2004
Financial investment of €658 million for additional sales of almost €2 billion
The purpose of this press release is to provide an update on the acquisitions carried out by
the Group in 2004 (not including share buybacks by Compagnie de Saint-Gobain), and
particularly those which were not specifically announced at the time.
Acquisitions are a cornerstone of the Group’s business development strategy, and are
mainly pursued in three directions:
- Building Distribution – primarily made up of local-based operations offering
significant external growth potential in Europe, particularly through bolt-on
acquisitions, and acquisitions of small and medium-sized companies.
- High-Performance Materials – involving operations carried out on a global scale
– offers acquisition opportunities in both developed and emerging countries,
allowing the Group to respond to the needs of its industrial partners around the
world.
- Historic Businesses – whose growth potential is primarily concentrated in
emerging countries (China, India, Latin America, Russia and Eastern Europe).
In each of these three groups of businesses, Compagnie de Saint-Gobain is faced with a
broad spectrum of acquisition opportunities. The opportunities it decides to take up are
selected on the basis of stringent criteria, including the quality of the teams available,
responsiveness to customer needs, and proven ability to create value for the Group.
In 2004, excluding Dahl, the Saint-Gobain Group primarily carried out bolt-on acquisitions
in the Building Distribution sector, alongside various transactions in emerging countries
within the Historic Businesses and High-Performance Materials sectors.
* * *
2
Overview of 2004 acquisitions by group of businesses
2004 acquisitions
(in € m)
Value of
securities
acquired
Debt
acquired
Enterprise
value
Estimated 2004
full-year sales *
Distribution – Dahl 384 312 696 1,503
Distribution – bolt-on acquisitions 145 -17 128 317
Historic Businesses 102 7 109 120
High-Performance Materials 27 3 30 28
TOTAL acquisitions 658 305 963 1,968
• Building Distribution: Financial investment of €529 million for additional
sales of €1,820 million.
In addition to the acquisition of the Scandinavian-based Dahl (financial investment of €384 million
and €1,503 million in acquired sales), the Distribution sector carried out 30 bolt-on acquisitions in
France, the United Kingdom and Germany, representing a financial investment of €145 million for
additional sales of €317 million.
The principal transactions broken down by country were as follows:
France – 18 companies acquired (61 sales outlets), representing total full-year
sales of €135 million
- 8 specialized distributors, namely Boch Frères, a tiling and bathroom specialist, Mi-
Landes (Cazenave group) in south-western France, specialized in roofing products,
Cessac and Sobem - two companies specializing in wood and paneling based in the Paris
region and in Normandy, the Paris-based plumbing and heating specialist Navatte, and
Salgado, operating in the plumbing and heating sector in the Aude and Pyrénées
orientales regions.
- 10 general distributors, namely Le Groupe Lejeune in Brittany, Porcher Matériaux based
in Central France, and Combronde.
United Kingdom – 10 companies acquired (24 sales outlets), representing total
full-year sales of €79 million
- 5 specialized distributors, including Northern Ireland-based Philip M. Bassett,
specializing in plumbing and heating, Eastern Glazed Ceramics, a distributor of ceramic
wall and floor tiles in south-western England, and tiling specialists Maxon Tile Distributors.
- 5 general distributors, including Pudsey Building Supplies in Yorkshire, E.P. Builders
Merchants in Leicester and Stanley Milnes Ltd.
Germany – 2 companies acquired (19 sales outlets), representing full-year sales
of €103 million
The acquisitions involved two specialist distributors, namely Kluwe, tiling distributor, and
Muffenrohr, specialized in public works, in which the Group purchased the remaining
stake of 50%.
3
• Historic Businesses: Financial investment of €102 million for additional
sales of approximately €120 million.
Acquisitions in emerging countries: 11 transactions representing full-year sales
of approximately €53 million
In line with the Group’s business model, growth in the Historic Businesses is more keenly
felt in emerging countries, where domestic markets will prove key to business expansion
efforts in the next few years.
- In emerging countries, the Flat Glass sector made a series of acquisitions, primarily in
China, where the largest acquisition concerned the Quingdao float line. These
transactions represent full-year sales of €36 million.
- Acquisitions in the Construction Products sector (Building Materials & Insulation) in the
Czech Republic and in China represented full-year sales of €17 million at the transaction
date.
Other acquisitions by the Historic Businesses: 10 transactions for full-year
sales of €67 million
The Historic Businesses made a series of local and regional bolt-on acquisitions,
particularly in the Construction Products sector, representing €54 million in sales. In the
Mortars business, the Building Materials division acquired French-based Mauer,
Eurovente/Strasservil, Emfi France (plant specialized in glues for tiling), as well as Lusocil
in Portugal. The Insulation division acquired Plafométal, the leading French producer of
metal frames and suspended metal ceilings.
• High-Performance Materials: Financial investment of €27 million for
additional sales of €28 million.
The High-Performance Materials sector made a series of investments in emerging
countries with the aims of partnering its industrial customers worldwide and of reducing its
costs. All of the sector’s financial investments were made in Reinforcements:
- In China, the Group created Saint-Gobain Technical Fabrics HongFa, a jointventure
based in Changzhou specializing in fabrics for the composites industry.
- In Russia, the Group acquired 85% of Steklovolokno, the leading manufacturer of
reinforcement threads in Russia.
- In Romania, the Group acquired Rompoliner, specialized distributor of products
for reinforcements.
* * *
Investor Relations Department
Financial investment of €658 million for additional sales of almost €2 billion
The purpose of this press release is to provide an update on the acquisitions carried out by
the Group in 2004 (not including share buybacks by Compagnie de Saint-Gobain), and
particularly those which were not specifically announced at the time.
Acquisitions are a cornerstone of the Group’s business development strategy, and are
mainly pursued in three directions:
- Building Distribution – primarily made up of local-based operations offering
significant external growth potential in Europe, particularly through bolt-on
acquisitions, and acquisitions of small and medium-sized companies.
- High-Performance Materials – involving operations carried out on a global scale
– offers acquisition opportunities in both developed and emerging countries,
allowing the Group to respond to the needs of its industrial partners around the
world.
- Historic Businesses – whose growth potential is primarily concentrated in
emerging countries (China, India, Latin America, Russia and Eastern Europe).
In each of these three groups of businesses, Compagnie de Saint-Gobain is faced with a
broad spectrum of acquisition opportunities. The opportunities it decides to take up are
selected on the basis of stringent criteria, including the quality of the teams available,
responsiveness to customer needs, and proven ability to create value for the Group.
In 2004, excluding Dahl, the Saint-Gobain Group primarily carried out bolt-on acquisitions
in the Building Distribution sector, alongside various transactions in emerging countries
within the Historic Businesses and High-Performance Materials sectors.
* * *
2
Overview of 2004 acquisitions by group of businesses
2004 acquisitions
(in € m)
Value of
securities
acquired
Debt
acquired
Enterprise
value
Estimated 2004
full-year sales *
Distribution – Dahl 384 312 696 1,503
Distribution – bolt-on acquisitions 145 -17 128 317
Historic Businesses 102 7 109 120
High-Performance Materials 27 3 30 28
TOTAL acquisitions 658 305 963 1,968
• Building Distribution: Financial investment of €529 million for additional
sales of €1,820 million.
In addition to the acquisition of the Scandinavian-based Dahl (financial investment of €384 million
and €1,503 million in acquired sales), the Distribution sector carried out 30 bolt-on acquisitions in
France, the United Kingdom and Germany, representing a financial investment of €145 million for
additional sales of €317 million.
The principal transactions broken down by country were as follows:
France – 18 companies acquired (61 sales outlets), representing total full-year
sales of €135 million
- 8 specialized distributors, namely Boch Frères, a tiling and bathroom specialist, Mi-
Landes (Cazenave group) in south-western France, specialized in roofing products,
Cessac and Sobem - two companies specializing in wood and paneling based in the Paris
region and in Normandy, the Paris-based plumbing and heating specialist Navatte, and
Salgado, operating in the plumbing and heating sector in the Aude and Pyrénées
orientales regions.
- 10 general distributors, namely Le Groupe Lejeune in Brittany, Porcher Matériaux based
in Central France, and Combronde.
United Kingdom – 10 companies acquired (24 sales outlets), representing total
full-year sales of €79 million
- 5 specialized distributors, including Northern Ireland-based Philip M. Bassett,
specializing in plumbing and heating, Eastern Glazed Ceramics, a distributor of ceramic
wall and floor tiles in south-western England, and tiling specialists Maxon Tile Distributors.
- 5 general distributors, including Pudsey Building Supplies in Yorkshire, E.P. Builders
Merchants in Leicester and Stanley Milnes Ltd.
Germany – 2 companies acquired (19 sales outlets), representing full-year sales
of €103 million
The acquisitions involved two specialist distributors, namely Kluwe, tiling distributor, and
Muffenrohr, specialized in public works, in which the Group purchased the remaining
stake of 50%.
3
• Historic Businesses: Financial investment of €102 million for additional
sales of approximately €120 million.
Acquisitions in emerging countries: 11 transactions representing full-year sales
of approximately €53 million
In line with the Group’s business model, growth in the Historic Businesses is more keenly
felt in emerging countries, where domestic markets will prove key to business expansion
efforts in the next few years.
- In emerging countries, the Flat Glass sector made a series of acquisitions, primarily in
China, where the largest acquisition concerned the Quingdao float line. These
transactions represent full-year sales of €36 million.
- Acquisitions in the Construction Products sector (Building Materials & Insulation) in the
Czech Republic and in China represented full-year sales of €17 million at the transaction
date.
Other acquisitions by the Historic Businesses: 10 transactions for full-year
sales of €67 million
The Historic Businesses made a series of local and regional bolt-on acquisitions,
particularly in the Construction Products sector, representing €54 million in sales. In the
Mortars business, the Building Materials division acquired French-based Mauer,
Eurovente/Strasservil, Emfi France (plant specialized in glues for tiling), as well as Lusocil
in Portugal. The Insulation division acquired Plafométal, the leading French producer of
metal frames and suspended metal ceilings.
• High-Performance Materials: Financial investment of €27 million for
additional sales of €28 million.
The High-Performance Materials sector made a series of investments in emerging
countries with the aims of partnering its industrial customers worldwide and of reducing its
costs. All of the sector’s financial investments were made in Reinforcements:
- In China, the Group created Saint-Gobain Technical Fabrics HongFa, a jointventure
based in Changzhou specializing in fabrics for the composites industry.
- In Russia, the Group acquired 85% of Steklovolokno, the leading manufacturer of
reinforcement threads in Russia.
- In Romania, the Group acquired Rompoliner, specialized distributor of products
for reinforcements.
* * *
Investor Relations Department