The acquisition from private equity company Cinven is valued at €1.02bn
Chryso provides comprehensive additives solutions for reduced CO2 sustainable construction, relying on innovative chemistry, formulation expertise, and knowledge of construction materials.
Saint-Gobain says the acquisition fits within its strategic vision of worldwide leadership for sustainable construction. It adds that it will further expand the group’s presence in the growing construction chemicals market with combined sales of more than €3bn across 66 countries.
Saint-Gobain says the major move towards low-carbon concrete in the next decade will be made possible by fast growing application of additives, which contribute to the strong reduction of concrete CO2 footprint and address the aggregate shortage as well as enable the development of the circular economy.
Additives also address urbanisation mega-trends and infrastructure needs by providing cost effectiveness, speed and productivity gains. Combining R&D capabilities will accelerate Chryso’s technological development with the objective to be at the forefront of innovative solutions for sustainable construction.
Chryso employs about 1,300 people and generated revenues of approximately €400m and an EBITDA of €85m over the last 12 months.
Global demand for the type of additives it provides is expected to grow at around 7% per year over the 2021-2025 period, outperforming the construction market. Saint-Gobain says that in emerging countries, demand for still under-penetrated construction chemicals solutions will continue to be supported by urbanisation, growing infrastructure spending, ready-mix solutions and efficiency gains.
In developed economies, demand will be mainly driven by sustainability requirementsas well as productivity, technical and aesthetics performance.
Saint-Gobain says the acquistion will provide opportunities to accelerate Chryso’s growth in major geographies thanks to Saint-Gobain’s large presence in markets such as India and the USA. It will also be able to sell Chryso’s products in new markets where Saint-Gobain has a strong presence in construction chemicals (such as Brazil and South-East Asia).
Thierry Bernard, chief executive officer of Chryso, said: “Saint-Gobain is the ideal strategic partner with a worldwide presence in the construction chemicals market and a large portfolio of solutions, with R&D and innovation capabilities and operational excellence that will allow Chryso to accelerate its development and ensure its continued success.”
Pierre-André de Chalendar, chairman and CEO of Saint-Gobain, and Benoit Bazin, COO, commented: “The acquisition of Chryso is a unique growth platform opportunity for Saint-Gobain to further develop our already strong presence in the growing construction chemicals market."
The acquisition is expected to be finalised in the second half of 2021.
