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LafargeHolcim to buy Firestone Building Products in US$3.4 billion deal

LafargeHolcim to buy Firestone Building Products in US$3.4 billion deal

FILE PHOTO: The logo of LafargeHolcim, the world's largest cement maker, is seen at its headquarters in Zurich, Switzerland March 2, 2017. REUTERS/Arnd Wiegmann

ZURICH -LafargeHolcim will buy Firestone Building Products from Bridgestone Americas in a US$3.4 billon deal, the world's biggest cement maker said on Thursday.

Firestone Building Products, which specialises in commercial roofing in the United States, had sales of around US$1.8 billion and earnings before interest, depreciation and amortisation of US$270 million in 2020, LafargeHolcim said in a statement.

The move is a departure from LafargeHolcim's recent strategy of focussing on small-scale bolt-on acquisitions. It said it would finance the deal with cash and debt.

The business was part of Japan's Bridgestone Corporation and will boost LafargeHolcim's presence in the United States, taking its annual sales there to US$6 billion.

The Swiss company said it plans to expand the flat roofing business to Europe and South America.

"With Firestone Building Products we are strengthening our biggest market, the U.S., while also building a global growth and innovation platform for the company," said LafargeHolcim Chief Executive Jan Jenisch.

(Reporting by John Revill; editing by Thomas Seythal and Silke Koltrowitz)

Source: Reuters

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