(RTTNews) – Simpson Manufacturing Co., Inc. (SSD) said on Wednesday it had submitted an offer to acquire the Etanco Group for € 725 million, or approximately $ 818 million.
Etanco is a designer, manufacturer and distributor of fastening and fastening solutions for the building construction market across Europe, which includes innovative fasteners, connectors, anchors and security solutions for roofing applications. , cladding, facade, waterproofing and solar panels.
For the twelve months ended September 30, 2021, Etanco’s net sales and operating margin were approximately € 258 million and 19.7%, respectively.
Simpson expects the deal to close towards the end of the first quarter of 2022 and is expected to have a positive impact on the company’s earnings in the first fiscal year after closing.
“Etanco’s business of providing trusted, highly sophisticated, customer service oriented technical solutions aligns with Simpson’s business model and core values, making Etanco an ideal acquisition to support growth. our European business continues, ”said Karen Colonias, President and CEO. Executive Officer of Simpson Manufacturing Co., Inc. “The acquisition of Etanco strengthens our presence and expands our geographic reach in Europe, deepens Simpson’s solutions portfolio with new and existing customers, and allows us to enter new and existing customers. new commercial building markets and to develop our direct sales activity throughout the region. In addition, we expect the acquisition to result in significant net sales growth with operating revenue synergies of approximately $ 30 million on an annual basis.
The acquisition is expected to be funded by a combination of $ 100 million of existing cash with the remainder of borrowings under the company’s existing revolving credit facility, which will increase from $ 300 million to $ 450 million, and a $ 450 million unsecured term loan with committed financing from Wells Fargo Bank and MUFG Union Bank.
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