Construction Products sector is strengthening its positions in emerging countries,
thanks to six acquisitions completed over the last few weeks in South Africa,
Algeria, Turkey and Argentina. The acquisitions concern companies involved in
the industrial mortars, insulation and gypsum businesses, and represent total
sales of more than EUR230 million.
In South Africa, Saint-Gobain has acquired TAC and Tylon, the country's leading
manufacturer of industrial mortars for tile adhesives, and has also entered
into an agreement with a view to acquiring Owens-Corning South Africa, South
Africa's top-ranking insulation business. This acquisition is subject to the
approval of the South African competition authorities.
Tylon is South Africa's no.1 manufacturer of cement-based tile adhesives and
grouts. It has sales of around EUR20 million and employs close to 70 people.
Tylon has two plants, in Johannesburg and Cape Town. Renowned for the quality
of its products and services, Tylon boasts an extensive network of distributors
across the country.
TAC offers an ideal complement to Tylon's geographical market and has an adhesives
plant 200 km to the east of Johannesburg (Middleburg). TAC was created in 2005,
fields a workforce of nearly 30 employees, and generates around EUR5 million
Saint-Gobain has entered into an agreement to purchase Owens Corning South
Africa (OCSA). With sales of approximately EUR25 million, OCSA is the only manufacturer
of glass wool and stone wool in South Africa and also manufactures insulating
foam. A former Isover licensee (glass wool and stone wool), the company has
already used Saint-Gobain's TEL process (1957 to 1997).
These three companies will be able to enhance their service offering to their
distributor and applicator customers thanks to BPB Gypsum Ltd and its logistics
In Algeria, Saint-Gobain has acquired 66% of the share capital of CM Gypso,
based in Bouira. CM Gypso has two quarries, which are thought to hold more than
40 million tons of gypsum. CM Gypso is ideally situated to serve customers in
two major cities - Algiers and Constantine, which represent 75% of the domestic
plaster market. On the manufacturing front, Saint-Gobain is planning to build
a 220,000-ton facility for production of its plaster product range.
In Turkey, Saint-Gobain and its partner Alghanim have taken joint control of
Izocam, after having acquired a majority stake (61.2%) in its capital. An IPO
on the remaining shares will be launched on the Istanbul stock market.
Izocam has been an Isover licensee for over 40 years. The front-ranking supplier
of insulation in Turkey and the Middle East, Izocam expects to deliver sales
of around EUR125 million in 2006, up sharply from 2005.
In Argentina, Saint-Gobain has acquired Iggam, a company specializing in industrial
mortars and plaster. IGGAM reported sales of EUR18 million in 2005 and has two
plants, one in Tortuguitas near Buenos Aires, and one in the state of Entre
Rios, 500 km to the north of the capital.
Tortuguitas is an ideal complement to Saint-Gobain Weber Argentina's plant
in Bosques, 40 km to the south of Buenos Aires. The two sites are perfectly
situated to serve the Buenos Aires region, where most of the Argentine business
In a market enjoying sustained growth, this acquisition drives Saint-Gobain
Weber into the top spot on all industrial mortars segments (tile adhesives,
wall-facing products, additives, white cement, etc.) and broadens its business
portfolio. This acquisition also represents an opportunity for Saint-Gobain's
Gypsum business, which is regaining its foothold on the Argentine market with
its Tuyango plaster brand, the recognized market leader.
These acquisitions in attractive and dynamic construction markets have confirmed
Saint-Gobain Construction Products as a major player in South Africa, Argentina,
Algeria and Turkey. The acquisitions have also helped to further the sector's
development in emerging countries.
With 45,000 employees across the globe and 250 consolidated companies, Saint-Gobain
Construction Products is the leader in all of its businesses: insulation (Isover),
gypsum (Placo, Gyproc, Rigips, etc.), outdoor living solutions (CertainTeed),
industrial mortars (Weber) and pipe (Pam). In 2005, the Construction Products
sector delivered sales of EUR10 billion (proforma BPB), representing 26% of
the total sales reported by the Saint-Gobain Group.