Weekly Digest June 8

Weekly M&A Digest
A curated selection of transactions and deals from the past week.
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Deal Summary

CRH plc to acquire Barrette Outdoor Living

CRH plc, a leader in building materials solutions, announced the acquisition of Barrette Outdoor Living, Inc., a North American provider of residential fencing and railing solutions, from TorQuest Partners and Caisse de dépôt et placement du Québec (“CDPQ”), for $1.9 billion.

The transaction follows the recent divestment of CRH’s Building Envelope business. It demonstrates the continued execution of the Group’s strategy to create shareholder value through active portfolio management and the efficient allocation and reallocation of capital.

“Barrette is an excellent addition to CRH. Our Architectural Products business has been one of our fastest growing businesses in recent years and the acquisition of Barrette complements and enhances our existing offering of sustainable outdoor living solutions in North America. It also demonstrates the continued execution of our integrated solutions strategy to create further value for our customers, our business and our shareholders. We welcome the Barrette team to CRH and look forward to working with them on the next phase of our growth and development.” - Albert Manifold, CEO of CRH.

Saint-Gobain to acquire Kaycan

Compagnie de Saint-Gobain S.A. (ENXTPA: SGO), announced the acquisition of Kaycan Ltd., a family-owned manufacturer and distributor of exterior building materials in Canada and in the United States, for US$928 million. With this acquisition, Saint-Gobain reinforces its worldwide leadership in light and sustainable construction by becoming the top siding player in Canada and enlarging its vinyl offer across the United States with complementary solutions, including notably aluminum and engineered wood.

“The acquisition of Kaycan is an excellent step for Saint-Gobain and I am very enthusiastic to warmly welcome the Kaycan teams into the Group. Not only does this acquisition allow us to strengthen our presence in siding both in Canada and in the United States, but it also allows us to broaden our offering into the exciting growth areas of aluminum and engineered wood siding, largely made with recycled materials and thus helping to drive the circular economy ecosystem in construction. It is perfectly aligned with the “Grow & Impact” strategy announced at our Capital Markets Day and reinforces our position in North America and as the worldwide leader in light and sustainable construction. It will create significant value for shareholders, enhance the profitable growth outlook of the Group, enrich our solutions for customers and provide attractive development opportunities for the Kaycan and Saint-Gobain teams.” – Benoit Bazin, CEO of Saint-Gobain.

Eagle Foods to acquire two brands from General Mills

Eagle Family Foods Group, a leading producer and marketer of canned sweetened condensed milk and evaporated milk products, announced the acquisition of Helper main meals and Suddenly Salad side businesses from General Mills, Inc. (NYSE: GIS)

“We are builders of brands, categories, and people…The Helper and Suddenly Salad brands, with strong heritage and high consumer awareness, are a perfect fit for what Eagle does best – investing in, innovating, and revitalizing brands to drive growth and nurture them to reach their full potential.” - Bernard Kreilmann, CEO of Eagle Foods.

The transaction is expected to close during the third quarter of 2022, subject to customary closing conditions and regulatory approvals.

Mohawk Industries to acquire Vitromex ceramic tile business from Grupo Industrial Saltillo (GIS)

Mohawk Industries, Inc. (NYSE: MHK), a leading global flooring manufacturer that creates products to enhance residential and commercial spaces around the world, announced the acquisition of the Vitromex ceramic tile business from Grupo Industrial Saltillo (GIS) for approximately $293 million.

“In the past decade, we have significantly increased our participation in the Mexican ceramic tile market, including developing a world-class organization and constructing a state-of-the-art facility in Salamanca. Ceramic tile is the primary flooring utilized in Mexico, and the market has grown approximately eleven percent in pesos per year over the past five years. Combined with Vitromex, we will offer our customers a complete array of residential and commercial products at all price points with enhanced service capabilities. Vitromex is one of the most highly regarded brands in the Mexican market and is recognized as a leader in innovation and design. We are pleased to welcome their talented team into the Mohawk global ceramic business. We will provide additional commentary on the Vitromex acquisition during our second quarter investor call.” - Jeffrey S. Lorberbaum, CEO of Mohawk.

The transaction is expected to close during the second half of 2022, subject to customary closing conditions and regulatory approvals.

Seale & Associates acted as exclusive financial advisors to Grupo Industrial Saltillo.

Heartland Express to acquire Smith Transport and related companies

Heartland Express, Inc. (NASDAQ: HTLD), an American truckload transportation company, announced the acquisition of Smith Transport, Inc. and related entities for $170 million.

“We are proud to welcome the Smith people, customers, and brand to the Heartland Express family. We are extremely happy to bring aboard a company with a rich tradition of trucking for more than forty years. It is truly an honor to have Smith Transport join our team. The Smith companies will continue to operate from Roaring Spring, Pennsylvania, under the leadership of Todd Smith, President, with ongoing support from founder and legend Barry Smith. We were attracted to this opportunity for three main reasons: the safe and experienced professional drivers, the high level of service offered to a blue-chip customer base, and the management depth that demonstrate the ability to continue operating independently and profitably. Our plan is to keep Smith the same company that is attractive to customers, drivers, and other personnel, while using our scale to offer better purchasing, more depth, and advantageous cost savings. Our trucking experience is deep across the board with longtime Heartland employees, the knowledge and experience of our Millis leadership, and now adding the Smith attributes to the team. This makes us even stronger as a combined company. The purchase price was funded with existing cash, and the addition of Smith is expected to be immediately accretive to our earnings per share.” – Michael Gerdin, CEO of Heartland Express.

SOURCES