Gypsum industry news

Brazil/Egypt: France-based Saint-Gobain has acquired Matchem in Brazil and started exclusive negotiations to acquire IDP Chemicals in Egypt via its Chryso subsidiary. Both transactions are intended to strengthen the company’s presence in the construction chemicals market with a focus on concrete admixtures. Matchem and IDP Chemicals will be consolidated within the Construction Chemicals segment in Saint-Gobain’s High Performance Solutions division.

Matchem, established in 2011, employs around 50 people across two plants in Brazil and reported revenue of around Euro20m in 2022. Saint-Gobain also operates mortar company Quartzolit, sealant and adhesive company TekBond and GCP Applied Technologies in Brazil.

IDP Chemicals has been licensed by Chryso since 2018 and employs 25 people at one plant. This acquisition is expected to be finalised in the first quarter of 2023.

North America: France-based Saint-Gobain has appointed Steve Williams president of its newly created construction chemicals North Americas unit. The unit combines GCP Applied Technology's speciality construction chemicals business and Chryso. Saint-Gobain acquired both GCP Applied Technology and Chryso in 2021.

Steve Williams previously worked as Chryso's North America president from 2019. Prior to this he was cement producer Titan America's sales and marketing director between 2012 and 2015. Williams holds a bachelor of science degree from Brigham Young University and a master’s in business administration (MBA) from the University of Florida.

UK: The Competition and Markets Authority (CMA) is considering whether the proposed acquisition by Saint-Gobain of GCP Applied Technologies could result in the creation of a relevant merger situation or lessen market competition generally. It has asked any interested party to comment on the transaction by mid-June 2022.

Saint-Gobain said it had agreed to buy construction chemicals producer GCP Applied Technologies for Euro2bn in late 2021 with a conclusion date to the transaction by the end of 2022.

France: Saint-Gobain’s sales grew by 15.8% year-on-year to Euro44.2bn in 2021 from Euro38.1bn in 2020. Its earnings before taxation, interest, depreciation and amortisation (EBTIDA) rose by 41% to Euro6.20bn from Euro4.42bn. Sales and earnings increased by 4% and 27% compared to 2019 levels before the coronavirus pandemic started. Sales revenue and operation income was reported up in all geographical regions. In North America the group noted that the integration of Continental Building Products had boosted its position in the US gypsum wallboard market and helped it to tap new sales channels.

“The records achieved in 2021 confirm that the group has entered a new post-transformation trajectory in terms of performance: market-beating sales growth, record earnings and margins, a high level of free cash flow generation that has more than doubled compared to previous years, and strong value creation for our shareholders thanks to strict capital allocation and the determined execution of our portfolio optimisation,” said Benoit Bazin, the chief executive officer of Saint-Gobain.

The group completed or signed 37 acquisitions in 2021, including Chryso and GCP Applied Technologies (GCP), marking its rapid expansion into the construction chemicals market. In November 2021 On November 15, 2021, Saint-Gobain said that it had acquired a gypsum plant in Nairobi, Kenya. It will be the company’s first production site in Kenya, where it will also invest in a construction chemicals production line.

US: Saint-Gobain has agreed to buy construction chemicals producer GCP Applied Technologies. Reuters News has reported that the move continues Saint-Gobain’s industrial diversification, as it also seeks to maximise its growth opportunities from the US’s on-going infrastructure overhaul. Saint-Gobain expects to conclude the deal by 2023 and will finance the acquisition through cash on its balance sheet.

Chief executive officer Benoit Bazin said “After the successful acquisition of Chryso, GCP is the logical next step to expand Saint-Gobain's presence in admixtures and additives, which provide key solutions to de-carbonise the construction industry.” He added “This acquisition is a decisive step in establishing Saint-Gobain's leading position worldwide in construction chemicals, with total sales of more than US$4.51bn [combined], up from US$3.39bn.”