Saint-Gobain Agrees to Acquire Companies in Brazil, Germany

Diversified manufacturer Saint-Gobain, Courbevoie, France, has agreed to acquire two companies: Brazilian adhesives company TekBond and German scrim manufacturer Kirson.

TekBond supplies a broad range of adhesives, sealants, sprays and masking tapes for the construction market and the automotive aftermarket. The acquisition will enable Saint-Gobain in Brazil to create synergies with its abrasives, mortars and flat glass business lines on the construction and industrial markets.

Kirson makes reinforcement scrim and combination products of scrim and nonwoven fabrics. Sales in 2016 were €27 million (US$31.5 million).

Saint-Gobain's sales in the first half of 2017 grew 4.4 percent, compared to the same period a year ago, to €20.4 billion (US$23.8 billion). Organic sales increased 3.5 percent and volume grew 1.7 percent despite the €220 million (US$256.7 million) impact of a June 27 cyberattack results.

Profit increased 26.5 percent to €754 million (US$879.8 million).

Innovative materials sales increased 4.1 percent like-for-like, driven by positive trends in flat glass. Building distribution like-for-like sales rose 3.2 percent.

France reported organic growth of 2.2 percent, buoyed by momentum in the new-build market. Renovation showed the first signs of improvement at the end of the first half. The decline in pipe continued to weigh on performance in the absence of major export contracts.

Other Western European countries reported organic growth of 2.7 percent for the first half. Market conditions continued to benefit Nordic countries as well as the UK despite a lack of visibility. Germany was down slightly.

North America posted 2.5 percent like-for-like growth in the first half, driven by construction. Industry made small gains overall, despite contrasting trends between end markets.

Asia and emerging grew 6.7 percent for the first half, despite the ongoing slowdown in Brazil. Asia advanced, with strong trading in China and India. Eastern Europe continued on an uptrend, driven by Poland and the Czech Republic.