Saint-Gobain to buy cladding firm

Kaycan specialises in exterior building materials including vinyl sidings

The purchase of family-owned Kaycan is intended to make the top siding firm in Canada and enlarging its range of vinyl products across the USA with complementary ranges including aluminium and engineered wood.

The purchase price represents a multiple of approximately 11.2 times Kaycan’s 2021-2022 earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$83m. The acquisition price is expected to be approximately US$820m, after the planned divestiture of Kaycan’s small US distribution arm while keeping the locally well-established Canadian distribution. The US distribution business is expected to be sold to a third party shortly after the finalisation of the transaction.

Saint-Gobain said that the acquisition meets its strategic and financial criteria set out in 2021. This included strengthening its role in North America as well as enriching its offering in light and sustainable construction; value creation by year three following the closing of the transaction; and maintaining a strong balance sheet and solid credit rating.

The transaction is expected to close by the end of 2022.

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