Owens Corning Sales Inc. said 27 July 2007 that it is buying Saint-Gobain“s glass reinforcement and composites division for USD 640 million.
The acquisition involves 20 plants, including 12 glass fi…
Owens Corning Sales Inc. said 27 July 2007 that it is buying Saint-Gobain“s glass reinforcement and composites division for USD 640 million. The acquisition involves 20 plants, including 12 glass fiber reinforcement facilities, six fabrics plants and two plants that produce both reinforcements and fabrics. The deal also includes a specialty fabrics business that supports glass fiber weaving and knitting operations. The business had sales of about USD 900 million in 2006. Saint-Gobain“s Wichita Falls, Texas facility is not part of the transaction. Owens Corning said it will sell plants in Battice, Belgium; Birkeland, Norway and Huntingdon, Pennsylvania to address regulatory concerns related to the transaction. The US building materials manufacturer will pay for the acquisition with cash on hand, cash flow from operations, an existing credit facility and proceeds from the sale of some plants. Owens Corning President and Chief Executive Dave Brown said the transaction will provide the company with a greater presence in countries including Russia, China and Mexico. It is also expected to help balance the company“s exposure to cyclical downturns in the North American residential construction market. The deal has been approved by both companies“ boards. The acquisition is expected to close by the end 2007, subject to regulatory approval and customary closing conditions.