DAVY VIEW

Holcim’s acquisition of Malarkey Roofing Products further expands its Solutions and Products business, which aims to reach 30% of net sales by 2025. Malarkey is described as having strong brand recognition in innovation and sustainability, with a record of driving double-digit growth. The business generates a margin of c.20%, which is in excess of Firestone when acquired earlier this year. The purchase price of US$1.35bn indicates an acquisition multiple of 11.2x FY22 EBITDA (no indication of 2021 performance given?!), which falls to 8.4x when adjusted for synergies of US$40m. The deal fits the group’s strategy to diversify from carbon-intensive cement production into sustainable building products in developed markets.