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Apr 4 2024, 08:00 IST/BST
Saint-Gobain Group
Acquisition of Bailey for €600m
- Sectors : Building products
- Companies : Saint-Gobain Group
DAVY VIEW
We believe that Saint-Gobain’s brisk capital deployment at reasonable valuations (€3.4bn spend on Bailey, CSR and Building Products of Canada (BPOC)) over the past 12 months at an average post-synergy multiple of c.8x), the consistency of its acquisition rationale (to expand in light construction) and the increasingly international earnings mix are all positive drivers against the company’s modest valuation (6.4x EBITDA currently).
