DAVY VIEW

We believe Saint-Gobain’s (SGO) decision to sell its Dahl specialist distribution business is consistent with the group’s strategy and continues a theme of active portfolio management. The scale of the transaction (enterprise value of €1.52bn) is meaningful and the disposal multiple of 10.4x EBITDA is a good outcome. The transaction also provides the group even more scope to pursue its growth ambitions and execute its “Lead & Grow” strategy. Developments in this regard are awaited, and we think an investment focus will be on product categories believed to have medium-term structural growth potential.