Page 165 - CW E-Magazine (9-7-2024)

News from Abroad

CONSTRUCTION CHEMICALS
Saint-Gobain agrees to buy Fosroc for around $1-bn

French glass and construction mate-
rials giant, Saint Gobain, has agreed
to acquire Dubai-based construction
chemicals company Fosroc for around
Euro 960-mn ($1.03-bn) to drive its
international expansion.

The purchase price represents 7.1x
of Forsoc’s combined earnings for the
next three years, including expected
cost savings and additional earnings. group to expand in high-growth mar- supported by an ambitious infrastruc-
The transaction, which will be fully kets such as India and the Middle East, ture plan for the coming decades,” the
financed with cash, is expected to close Saint Gobain’s CEO Mr. Benoit Bazin French firm said in the statement.
in 1H 2025, subject to regulatory said in a statement.
approvals, according to a Saint Gobain Following the acquisitions of
statement. With 20 manufacturing plants and Chryso in 2021, GCP in 2022 and 33
around 3,000 employees, Fosroc pro- additional acquisitions since 2021,
Saint-Gobain has been on the hunt vides a wide range of technical solutions this move is a new strategic step in esta-
for acquisitions outside of Europe as it for the construction industry, including blishing Saint-Gobain’s worldwide
seeks to grow its worldwide presence admixtures and additives for concrete presence in construction chemicals,
in construction chemicals. Since 2021, and cement, adhesives and sealants, which will have combined sales of
the multinational has bought 35 com- waterproofing solutions, concrete re- €6.2-bn across 73 countries following
panies, including Chryso and GCP that pair solutions and flooring. “Fosroc is the acquisition, it added. Saint-Gobain
operate in the sector. a leading player in India, one of the expects to realise synergies of $54-mn
most attractive countries in construc- in the third year after the deal is
The Fosroc deal will allow the tion chemicals worldwide with growth completed.

ON THE BLOCK
OQ Chemicals to start sales process

The Omani owner of Germany- “Owners and management are con- dollar-denominated term loans which
based oxo-alcohols maker, OQ fident that OQ’’s financial restructuring would have been due in October.
Chemicals GmbH, is set to kick off will progress successfully. At the same
a sales process for the business after time, OQC’s strong operating perfor- A group of lenders has been in nego-
the company reached a short-term mance will pick up further which in tiations with the company and Oman’s
financing deal with lenders, informed a turn will contribute to the envisaged OQ SAOC to find a solution which
Bloomberg report. M&A process,” the report quoted the would allow the company to refinance
company’s chief restructuring officer its debt. Lenders rejected a takeover
Some of OQ Chemicals’ main Mr. Hans-Joachim Ziems as saying. proposal from the private equity firm
lenders have agreed to provide €75-mn Advent International, as it didn’t offer cre-
($80.2-mn) in bridge financing. A OQ Chemicals’ refinancing plans ditors a high enough recovery, Bloomberg
group of lenders have also signed an were thrown into disarray earlier this previously reported. OQ SAOC acquired
agreement with the company to extend year after its owner, Oman’s state energy the chemicals company from Advent in
the maturities of €1.1-billion equivalent company, ruled out providing further 2013. The firm, previously known as
of debt due later this year, although the new funds to the business, Bloomberg Oxea, manufactures chemicals used in
details are still yet to be finalised, the had previously reported. The com- a variety of products including flavour-
report stated. pany’s debt load includes euro- and ings, pharmaceuticals and fragrances.

Chemical Weekly July 9, 2024 165

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