Cemented: Firestone Building unit sold to LafargeHolcim in multi-billion-dollar deal
LafargeHolcim has snapped up commercial roofing leader Firestone Building Products in a hefty $3.4bn (£2.5bn) deal.
The Swiss cement giant will acquire Firestone from Bridgestone Americas in a “milestone” for sustainable building materials solutions.
With the US as LafargeHolcim’s largest market, the deal can bolster annual sales to exceed $6bn.
LafargeHolcim boss Jan Jenisch said, “With Firestone Building Products we are strengthening our biggest market, the US, while also building a global growth and innovation platform for the company.
The deal forms part of a plan to expand business into Europe and Latin America, to push towards becoming a global leader in the roofing market. It will also allow Bridgestone to strengthen its tire and mobility solutions businesses.
The Nashville, Tennessee-based business generated an operating profit of $238m in 2020. Around half of the deal would be financed through LafargeHolcim’s exiting cash, with the rest financed via issuing bonds
Bridgestone Americas top boss Paolo Ferrari said, “Like Bridgestone, LafargeHolcim is a global company with a strong financial position and thriving culture.
“This transaction will create new growth opportunities for Firestone Building Products and allow Bridgestone to focus its resources to further invest in the company’s tire business and rapidly growing mobility solutions business.”
The sale seeks to capitalise on urbanisation trends that support the flat roofing market which is currently estimated to be worth approximately $50bn globally.