Saint-Gobain to acquire construction chemicals firm Ovniver Group

Saint-Gobain has entered into a definitive agreement to acquire Ovniver Group, a leading privately-owned construction chemicals player in Mexico and Central America, for 815 million dollars (approximately 740 million euros) in cash. Following the acquisitions of Chryso, GCP and Fosroc (underway), this move represents another strategic step in establishing Saint-Gobain’s worldwide presence in construction chemicals, which will have combined sales of 6.5 billion euros across 76 countries following the acquisition (pro forma).Ovniver Group is a construction chemicals player with a commercial and industrial footprint in the high-growth Mexican and Central American markets. The company is expected to generate revenues of 285 million dollars, with a growth rate of around 20 % per year on average in the last 5 years, and achieve an EBITDA margin of 21.7 % in 2024.

Financing structure and valuation ratios of the acquisition

The purchase price represents an acquisition multiple (before synergies) of approximately 13.1x Ovniver Group’s 2024E EBITDA of 62 million dollars, and a multiple of around 8.0x including run rate synergies of approximately 40 million dollars in year 3. This acquisition will be fully financed in cash. The Group will maintain a strong balance sheet with net debt / EBITDA remaining well within the target range (1.5x to 2.0x), taking into account the acquisitions of CSR, Fosroc and Ovniver Group. Closing of the transaction is subject to customary conditions and is expected in the first half of 2025.

Ovniver Group has shown growth, averaging 20 % sales growth annually from 2019 to 2024E. The company boasts an EBITDA margin above 21 % due to its strong brands, well-positioned industrial footprint, broad product offer, robust commercial organization, and experienced leadership team with a proven track record in execution.