French building materials company Saint-Gobain is to buy Canadian materials producer and distributor Kaycan for €860m in cash.
The acquisition creates a path for Saint-Gobain’s to be Canada’s top siding player and enlarges its vinyl and other offerings across the US.
Saint-Gobain said it sold around €560m of gypsum, insulation, ceilings and roofing products in Canada last year.
Kaycan is a family-owned business based in Montreal. Last year it made a pre-tax profit of €61m on turnover of €350m. It has 12 factories, of which nine are in Canada, and it employs some 1,300 people
Saint-Gobain said it expected to finalise the deal before the end of the year, assuming it received approval from Canadian competition authorities.
The deal is the latest in a number of acquisitions carried out by the French company in the North American market. Last year, it bought US construction chemicals company GCP Applied Technologies for about $2.3bn, and in 2019 it took over Virginia-based plasterboard maker Continental Building Products for $1.4bn (see further reading).