Saint-Gobain strengthens its presence in Australia with the acquisition of CSR

Saint-Gobain has announced its intention to acquire all of the outstanding shares of CSR Limited, a leading construction products company in Australia, for a cash payment of A$9 per share. This represents an enterprise value of 4.5 billion Australian dollars, or approximately 2.7 billion euros, and a net enterprise value of 3.2 billion Australian dollars after taking into account real estate at short and medium term of at least 1.3 billion Australian dollars.

The acquisition of CSR, a company with 2,500 employees and 30 production sites, marks a decisive step for Saint-Gobain to establish a dominant presence in the Australian construction market. This operation aligns with the group's vision as a global leader in sustainable and lightweight construction. CSR, recognized for its iconic brands, will contribute to Saint-Gobain's global portfolio.

The agreed price reflects a 33% premium to the one-month volume-weighted average price of CSR's shares, resulting in a pre-synergy multiple of 10.7 times expected EBITDA for the financial year ending in March 2024.

Saint-Gobain plans to finance the acquisition entirely with cash, promising value creation from the third year following the closing of the transaction. Completion of this acquisition is subject to CSR shareholder approval, necessary regulatory approvals and other customary closing conditions, with closing expected in the second half of 2024.