(News Bulletin 247) – Oddo BHF maintains its ‘outperformance’ rating on Saint-Gobain shares with an unchanged price target of 70 euros after Saint-Gobain announced that it had reached a definitive agreement on the the acquisition of Building Products of Canada Corp. for approximately 925 million euros (1325 million Canadian dollars).
Building Products of Canada is a non-listed player producing roofing shingles for the residential sector as well as wood fiber insulation panels in Canada. This company generated 2022 sales of 435 MC$ (millions of Canadian dollars) and an EBITDA of 111 MC$.
According to Oddo BHF, Saint-Gobain should benefit from significant synergies given the strong complementarity with the existing products of its subsidiary CertainTeed and especially Kaycan in Canada.
“Our business plan for Saint-Gobain’s acquisition of Building Products of Canada shows a ROCE of nearly 10% in 2025 based on continued market growth of 5%,” the analyst said.
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