5 LETTER TO SHAREHOLDERS No. 100 FOCUS... FOSROC is a leading global player in construction chemicals with a strong geographic presence, particularly in India, the Middle East and AsiaPacific. The company joined Saint-Gobain for $1,025 million (approximately €960 million). This purchase price represents a multiple of around 7.1x estimated 2024 EBITDA after taking into account full-year synergies in year 3. In 2024, FOSROC generated sales of around $487 million, with annual growth of around 11% since 2021, and an EBITDA margin in excess of 18%. Benoit Bazin, Chairman and CEO of Saint-Gobain was delighted with this acquisition, which is perfectly aligned with the strategic objectives of the “Grow & Impact” plan: “FOSROC provides a wide range of technical solutions for the construction industry that will complement Saint-Gobain’s existing product range. This acquisition represents a unique opportunity for Saint-Gobain to strengthen its global presence in construction chemicals, driven by positive macroeconomic trends, notably the transition to low-carbon concrete. It is also an opportunity for the Group to develop its positions in fastgrowing emerging countries, notably in the Middle East and India. FOSROC is a reference in this country, one of the most attractive in the world for construction chemicals, with growth driven by an ambitious infrastructure plan for the coming decades”. FOSROC’s positions in India, the Middle East and Asia-Pacific will complement Chryso’s presence mainly in Europe, Turkey and Africa, and GCP’s presence in North America, Latin America and Asia-Pacific. The acquisition of FOSROC will create value for Saint-Gobain’s shareholders and customers, with strong potential for synergies: $54 million are expected by the third year following completion of the transaction. This includes cost synergies through economies of scale on purchasing (notably raw materials and with the vertical integration of polymer production), optimization of industrial presence, savings in general and administrative expenses, and reductions in logistics and production costs. Growth synergies are expected to be generated through cross-selling opportunities, benefiting from the combined effect of Saint-Gobain’s innovation capabilities and FOSROC’s strong positioning in infrastructure markets and proximity to customers. These synergies are expected to be realized across SaintGobain’s global construction chemicals platform and through the Group’s strong presence in the light and sustainable construction sector in India and the Middle East. Click on the link to read the press release announcing the acquisition of FOSROC. 1. Including Gulf states, Saudi Arabia and Egypt FOSROC IN INDIA, THE MIDDLE EAST AND ASIA-PACIFIC
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