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[September 2003]
Saint-Gobain Terreal Sold
Compagnie de Saint-Gobain has signed an agreement to sell its subsidiary Saint-Gobain Terreal to a financial company controlled by the Carlyle investment fund. Under the agreement, Terreal - which is a terracotta tile and brick manufacturer - is valued at €514 million (of which €400 million for the value of the shares). The expected completion date for the sale is 31 October 2003, provided the required approval is received from the European Commission competition authorities.
A major player in the French clay tile market, the Terreal group was born out of the merger of Guiraud, Tuiles Lambert and Tuiles et Briques de France (TBF). Sales for the group in 2002 totalled €328 million. Terreal also operates in Italy under the San Marco Laterizi brand, in Spain through Saint-Gobain Terreal Espaa (formally Ceramical del Ter), in the USA through Ludowici, and also in Malaysia.
Terreal has over 2,000 employees based at 22 tile and brick production sites of varying sizes, including over 1,500 employees at 14 sites in France.
Against the backdrop of increasing consolidation in the European terracotta tile and brick market, Saint-Gobain has chosen the Carlyle investment fund as the partner to support Terreal in its growth drive. The management team of Terreal will invest in the transaction. This, says the company, will enable Terreal to ensure its long-term development without the need for funding from the Saint-Gobain Group, whose acquisition strategy remains focused on its Building Materials Distribution and High-Performance Materials sectors.
ENDS