French building materials company Saint-Gobain announced on Thursday that it has entered into an agreement to acquire Fosroc, a Dubai-based construction chemicals company, for approximately $1. 03 billion. This acquisition is a strategic move by Saint-Gobain to bolster its international presence, particularly in high-growth markets.
The transaction, which is expected to close in the first half of 2025, will be financed entirely through cash reserves. Saint-Gobain has been actively pursuing acquisitions outside of Europe in recent years, with a focus on the construction chemicals sector. Since 2021, the company has acquired 35 businesses in this sector, including Chryso and GCP.
According to Saint-Gobain CEO Benoit Bazin, the acquisition of Fosroc will strategically position the group for expansion in the Middle East and India, which are considered to be high-growth markets in the construction chemicals industry. The combined expertise and market reach of both companies are expected to generate significant synergies, with Saint-Gobain anticipating $54 million in annual cost savings within three years of the deal's completion.
Fosroc, headquartered in the United Arab Emirates, is a leading manufacturer and distributor of construction chemicals in the Middle East and North Africa region. The company offers a wide range of products, including waterproofing solutions, building adhesives, and concrete admixtures. Fosroc's strong presence in these regions will complement Saint-Gobain's existing footprint and provide a platform for further growth.
Analysts believe that this acquisition aligns with Saint-Gobain's long-term strategy of expanding its offerings in the construction chemicals sector and strengthening its presence in emerging markets. The combined entity will be well-positioned to capitalize on the increasing demand for high-performance construction materials in these regions.
The acquisition is subject to customary regulatory approvals. However, with both companies expressing their commitment to the deal, it is expected to close within the stipulated timeframe. The acquisition of Fosroc is a significant development for Saint-Gobain, and it will be closely watched by industry observers to see how the combined entity leverages its strengths to achieve its growth objectives.