Gypsum industry news

US: Germany’s Knauf has completed its acquisition of USG. The company said that the purchase would create, “a global building materials industry leader that will be even better positioned to meet customers' needs by leveraging two highly complementary businesses, product portfolios and global footprints.”

"We greatly admire USG's strong brands, leading market positions in North American wallboard and ceilings, and highly talented employee base,” said Alexander Knauf, General Partner of Knauf. He added that the transaction was the largest acquisition in Knauf’s history.

Knauf agreed to buy USG in mid-2018 for US$7bn. The Australian Competition and Consumer Commission has approved the deal in late March 2019 subject to asset divestments relating to its Boral-USG joint venture.

New Zealand: Germany’s Knauf and US-based USG have applied to the Commerce Commission asked for clearance for the two companies to merge. USG is active in New Zealand through its 50% interest in USG Boral Building Products, which supplies gypsum wallboard, suspended ceiling components and other building materials. Knauf is active in the import and supply of products used for modular suspended ceilings and insulation in New Zealand. The proposed merger is also to be assessed by competition authorities in several jurisdictions including Australia, USA and Singapore.

US: National Gypsum, Eagle Materials and PABCO Building Products have agreed to pay US$125m to settle claims that they fixed the price of gypsum wallboard. A preliminary motion to approve the settlement is scheduled to be filed in January 2018, said David Young, a partner at Cohen Milstein Sellers & Toll, a lead plaintiffs’ firm in the litigation, according to the Legal Intelligencer newspaper. The legal firm and others are representing wallboard customers, including distributors and installers.

The three wallboard producers are the last of seven defendants of a lawsuit that started in 2013. Previous deals with Lafarge North America, Temple Inland and USG bring the total amount of settlements for direct purchasers in the case to over US$190m. A seventh company, CertainTeed, was granted summary judgment in 2016.