Saint-Gobain to Buy Continental Building Products for $1.4 Billion -- Update

Date : 11/13/2019 @ 1:15AM
Source : Dow Jones News
Stock : Cie de SaintGobain (SGO)
Quote : 37.48  0.01 (0.03%) @ 1:40PM

Saint-Gobain to Buy Continental Building Products for $1.4 Billion -- Update

Cie de SaintGobain (EU:SGO)
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By Josh Beckerman

 

France's Compagnie de Saint-Gobain SA (SGO.FR) has agreed to buy Continental Building Products Inc. (CBPX) for about $1.4 billion.

Saint-Gobain said the deal for the Herndon, Va., company will broaden its asset portfolio and increase its U.S. presence.

The transaction is worth $37 a share. Continental shares rose nearly 12% during the regular session on a Bloomberg report about the deal and increased 1.5% to $36.30 after hours.

Continental, which makes products including gypsum wallboard, also reported that third-quarter earnings fell to 39 cents a share from 50 cents a share, while net sales fell 3% to $127.4 million. Wallboard sales volume increased but the average price declined.

Saint-Gobain said it will largely finance the acquisition using proceeds from divestments, and said it will continue its divestment program even thought it has already reached its 2019 goals.

Last week, Saint-Gobain said it sold its regional glass-transformation business and reached a deal to sell its expanded-polystyrene business in France.

 

--Maria Armental contributed to this article.

 

Write to Josh Beckerman at josh.beckerman@wsj.com

 

(END) Dow Jones Newswires

November 12, 2019 20:00 ET (01:00 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.


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