(RTTNews) - Swiss building materials company Holcim AG (HCMLY.PK, HCMLF.PK) announced Thursday that it has signed an agreement to acquire Malarkey Roofing Products, a US residential roofing company, for $1.35 billion in cash.
The acquisition is earnings per share accretive from the first year. The company expects synergies of $40 million per year on a run-rate basis to be realized by year three.
The transaction is subject to customary conditions and regulatory clearance in the United States. It is expected to close in the first quarter of 2022.
Portland, Oregon -based Malarkey Roofing projects 2022 net sales of $600 million and EBITDA of $120 million.
The deal accelerates Holcim's growth in Solutions & Products to reach 30% of group net sales by 2025. The complementary acquisition in roofing systems would achieve $4 billion net sales by 2025.
Jamie Gentoso, Global Head of Solutions & Products, said, "With Malarkey Roofing Products we enter the highly profitable and fast-growing residential roofing market, driven by repair and refurbishment as well as shifting customer preferences towards more sustainable and resilient building materials."
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