Saint-Gobain recently announced the acquisition of the Norandex group from Owens Corning. Norandex has 2200 employees and delivered sales of $866 million in 2006. The company’s business is split into two activities: building materials distribution and vinyl siding manufacturing.
The Norandex merchant brand, which will be integrated within Saint-Gobain’s Building Distribution sector, boasts a network of 153 specialized distribution branches dealing mainly in exterior building products (siding, doors, windows, etc.). Norandex ranks among the top 15 U.S. building merchants in a highly fragmented market.
Norandex has also three plants used to manufacture vinyl siding, which is distributed by its own branches as well as by other independent distributors. The Norandex plants will be consolidated with the existing production facilities operated by the exterior building solutions division of Saint-Gobain’s Construction Products sector in the U.S., and will enable the group to unlock significant synergies.
The completion of this transaction, which values Norandex at an enterprise value of $343 million (net of cash tax benefits), is subject to the agreement of the competition authorities in the U.S. For additional information, visit www.saint-gobain.com