BY Richard Summerfield
Holcim AG has agreed to acquire US roofing systems manufacturer Duro-Last in a $1.29bn deal. The deal is expected to close by the second quarter of 2023, subject to customary conditions and regulatory clearance in the US.
Duro-Last currently employs around 840 workers and has annual sales of roughly $540m. The deal is expected to complement Holcim’s integrated roofing offerings, with expected synergies of $60m per year.
The transaction is valued at $1.293bn, representing a 2023 earnings before interest, taxes, depreciation and amortisation (EBITDA) multiple of 11.9x, or 7.4x after synergies. It is earnings per share accretive from the first year. With this acquisition, Holcim’s roofing systems will exceed $4bn in net sales ahead of schedule.
“I’m excited to welcome Duro-Last into Holcim’s broad range of innovative and sustainable building solutions,” said Jan Jenisch, chief executive of Holcim. “Duro-Last is a perfect strategic fit for our roofing business. Its proprietary technologies and leading brands complement our offering in the fast-growing North American market. Its energy-efficient systems and excellence in recycling will further advance our leadership in sustainability. I congratulate the Burt family and its leadership team for developing such a thriving business, based on its strong customer relationships and most of all its empowered and dedicated people. I am excited to further strengthen the Duro-Last brand and welcome all 840 employees to the Holcim family.”
“Over the past 45 years, our family business has continually reinvested in Duro-Last to create the solid, financially strong and well-recognized company we are today,” said Tom Saeli, chief executive of Duro-Last. “We are delighted to be joining the Holcim family, which shares our core values, and we look to the future to accelerate our success. Holcim recognizes the opportunities at Duro-Last and we are confident it will support us in our future growth plans.”
This acquisition of Duro-Last advances Holcim’s ‘Strategy 2025 – Accelerating Green Growth’ with the goal to expand its Solutions & Products business to 30 percent of group net sales by 2025. In the first nine months of 2022, Solutions & Products boasted a recurring operating profit margin of 20 percent, better than the 16 percent level for Holcim as a whole.
The deal is one of the largest acquisitions Holcim has made in North America. In early 2022, it acquired Malarkey Roofing Products for $1.35bn. Holcim also acquired Firestone Building Products in April 2021.
News: Holcim cements North America push with $1.29 bln acquisition of roofing company