LafargeHolcim has signed an agreement to acquire Firestone Building Products (FSBP) from tyre manufacturer Bridgestone for US$3.4bn.
FSBP roofing materials are made EPDM (ethylene propylene diene monomer), a synthetic rubber. More than 85% of its $1.8bn annual sales are in the USA and only about 7% in Europe currently.
According to analysis from Berenburg Capital Markets, the European flat roof market is largely comprised of bitumen membranes with EPDM products accounting for less than 5%. The analysts believe, however, that with the power of LafargeHolcim behind Firestone, Europe (including the UK) could be in for a big push on rubber roofing.
While in the other direction, it also boosts LafargeHolcim's presence in the USA.
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LafargeHolcim chief executive Jan Jenisch 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.”
Paolo Ferrari, Bridgestone Americas president, said: “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 tyre business and rapidly growing mobility solutions business. Like Bridgestone, LafargeHolcim is a global company with a strong financial position and thriving culture. We know they will take great care of our Firestone Building Products employees and customers, and ensure the business enjoys growth and success for many years to come.”
Founded in 1980, Firestone Building Products (FSBP) is a business unit of Bridgestone Americas and part of Tokyo-based Bridgestone Corporation.
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