Saint-Gobain sells its PVC “Pipe & Foundations” business to Westlake
Chemical for US$175 million (around €135 million)
PARIS -- March 6, 2013
Saint-Gobain signed an agreement for the sale of its U.S.-based PVC Pipe &
Foundations business to North American Pipe Corporation, a subsidiary of
Westlake Chemical Corporation (NYSE:WLK) of Houston, Texas, for a total price
(enterprise value) of US$175 million (around €135 million), representing 7.2
times 2012 EBITDA (US$24 million). Manufactured by Saint-Gobain’s Exterior
Products Division within the Construction Products Sector and marketed under
the CertainTeed brand, these polyvinyl chloride pipes and fittings are used in
various agricultural and industrial applications. The business employs close
to 200 people and has two production sites in the United States, in Lodi,
California and McPherson, Kansas.
With this divestiture, Saint-Gobain’s Exterior Products Division is
contributing to Saint- Gobain’s strategic refocusing on the Habitat market.
CertainTeed, with its insulation, wallboard, roofing, siding and ceilings
products designed specifically for North American homes and buildings, will
then be fully focused on the construction market (especially residential),
allowing it to fully benefit from the further upturn in this market.
The sale proceeds will be used primarily to pursue the Group’s acquisition
strategy, focused on small- or medium-sized acquisitions.
This transaction is expected to close in the 2^nd quarter of 2013, subject to
standard closing conditions including US regulatory review.
Saint-Gobain, the world leader in the habitat and construction markets,
designs, manufactures and distributes building materials, providing innovative
solutions to the challenges of growth, energy efficiency and environmental
protection. With 2012 sales of €43.2 billion, Saint-Gobain operates in 64
countries and has nearly 193,000 employees. For more information about
Saint-Gobain, visit www.saint-gobain.com.
About Westlake Chemical
Westlake Chemical is a manufacturer and supplier of petrochemicals, polymers
and building products. The company’s range of products includes: ethylene,
polyethylene, polypropylene, styrene, caustic, VCM, PVC resin and PVC pipe,
windows and fence. For more information about Westlake Chemical, visit
Analyst / Investor Relations
Florence Triou-Teixeira, +33 1 47 62 45 19
Vivien Dardel, +33 1 47 62 44 29
Alexandra Baubigeat, +33 1 47 62 30 93
Sophie Chevallon, +33 1 47 62 30 48
Susanne Trabitzsch, +33 1 47 62 43 25
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