Saint Gobain Or Regulatory News (COD)

17 Mar 2008 07:00

Compagnie de Saint-Gobain14 March 2008 March 13, 2008 Finalization of the Maxit acquisition Saint-Gobain doubles the size of its industrial mortars business Saint-Gobain finalized its acquisition of the Maxit group from HeidelbergCementon March 13, 2008, following approval from the European competition authoritieson March 4, 2008 (subject to the subsequent divestment of two small subsidiariesspecializing in the production and sale of gypsum-based products with totalrevenues of around €40 million). The cost of the transaction is €2,091 million,including €577 million in debt. Maxit is a leading manufacturer of industrial mortars and reported sales of€1,338 million in 2007, up 8.2% year-on-year. It has 5,130 employees. The acquisition is part of the Group's strategy to develop its presence onconstruction markets, and allows Saint-Gobain to double the size of itsindustrial mortars business. In 2007, industrial mortars already represented€1,117 million of sales (under the Weber banner), a rise of 13.6% year-on-year,including 9.8% organic growth. The acquisition will also give Saint-Gobain afront-ranking position in new markets such as Germany and Scandinavia. The twogroups have a joint presence in numerous eastern European countries and in mostwestern European countries. Maxit has 103 plants in 30 countries, while Weberhas 80 units in 27 countries. The industrial mortars business combines strong growth in emerging countrieswith sustained growth in developed countries, in particular thanks toimprovements in exterior insulating systems (ETICS - External Thermal InsulationComposite System) and productivity gains on building sites. Industrial mortarsare inherently locally-sourced products, for which marketing and technicalinnovations play an important role in terms of product formulations andspecifications. In addition to its industrial mortars business, Maxit provides clay-basedsolutions for draining and insulating foundations, a widely used technique inScandinavian countries. Maxit's addition to the Group's Construction Products sector will unlock a largenumber of growth synergies with both Exterior Solutions (particularly Webermortars) and Interior Solutions (plaster and insulation products). Theacquisition is also expected to generate around €30 million in cost synergies. The Maxit acquisition falls within the scope of the Group's strategy to deepenits footprint in construction markets, in its unique capacity as world leader inits field, delivering innovative solutions for the key challenges of our time:growth, energy and the environment. ********* Investor Relations Department Mrs Florence Triou-Teixeira Tel.: +33 1 47 62 45 19 Mr Alexandre Etuy Tel.: +33 1 47 62 37 15 Mr Vivien Dardel Tel.: +33 1 47 32 44 29 Fax.: +33 1 47 62 50 62 This information is provided by RNS The company news service from the London Stock Exchange