LafargeHolcim Acquires Firestone Building Products in $3.4bn Deal

LAFARGEHOLCIM has agreed to acquire Firestone Building Products, the commercial roofing and building envelope company, for $3.4 billion.

In what is the company’s biggest acquisition in a decade, Lafarge is to finance the purchase from Japan’s Bridgestone Corporation with cash and debt. The acquisition agreed on 7 January, is expected to complete by June 2021. LafargeHolcim has estimated sales of $110 million per year within two years from a growing roof market in the USA driven by solar and green roofing.

Jan Jenisch, LafargeHolcim CEO, said: “I am excited to be entering the highly attractive roofing business. With Firestone Building Products we are strengthening our biggest market, the US, while also building a global growth and innovation platform for the company.

“Today’s milestone is a strategic leap on our journey to become the global leader in innovative and sustainable building solutions, to build a world that works for people and the planet. I have great respect for the high-calibre leadership and expertise of the Firestone Building Products’ team and look forward to welcoming them into the LafargeHolcim family.”

$3.4bn Deal

The acquisition of Firestone will add to Lafarge’s $6 billion annual sales in the US. The company says urbanization trends are accelerating the development of the flat roof market, estimated at around $50 billion globally. LafargeHolcim’s expectations of market growth are driven by technology, branding and Firestone’s position in the high-growth repair and refurbishment segment, which accounts for most of its sales. Firestone reports sales of £1.8billion in 2020F.

Taylor Cole, Firestone Building Products President, said: “Today is a big moment for the Firestone Building Products team as we look forward to becoming part of the global leader in building materials and solutions. Together, we are in a prime position to accelerate our growth by combining Firestone Building Products’ advanced technologies and know-how with LafargeHolcim’s global scale and reach.”

LafargeHolcim expects to accelerate its growth through cross-selling opportunities and further bolt-on acquisitions. LafargeHolcim also aims to swiftly globalize the business, leveraging its European and Latin American footprint.

With the acquisition, LafargeHolcim will add 15 manufacturing facilities, 1,800 distribution points, and three R&D laboratories to its network. On completion of the sale, Firestone will continue to be headquartered in Nashville, Tennessee, and all its 1,900 employees will keep their jobs.

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