NASHVILLE, Tenn. — Multinational building materials manufacturer LafargeHolcim has signed an agreement to acquire Firestone Building Products for $3.4 billion.
Firestone Building Products, which manufactures commercial roofing products, brought in roughly $1.8 billion in sales in 2020. With this acquisition LafargeHolcim will add 15 manufacturing facilities, 1,800 distribution points, and three R&D laboratories to its network. Upon completion of the sale, Firestone Building Products will continue to be headquartered in Nashville, Tenn., and all 1,900 employees will transition to LafargeHolcim.
Jan Jenisch, CEO of LafargeHolcim, said today's announcement is a strategic step into LafargeHolcim becoming a global leader in innovative and sustainable building solutions.
"I am excited to be entering the highly attractive roofing business," said Jenisch. "With Firestone Building Products we are strengthening our biggest market, the U.S., while also building a global growth and innovation platform for the company."
Jenisch added he has "great respect for the high-caliber leadership and expertise" of Firestone Building Products’ team and looks forward to welcoming them into the LafargeHolcim family.
"Today is a big moment for the Firestone Building Products team as we look forward to becoming part of the global leader in building materials and solutions," said Taylor Cole, Firestone Building Products president. "Together, we are in a prime position to accelerate our growth by combining Firestone Building Products’ advanced technologies and know-how with LafargeHolcim’s global scale and reach."
Urbanization trends are accelerating the development of the flat roof market, currently estimated at around $50 billion globally. By entering into this sector, LafargeHolcim plans on delivering above-market growth driven by innovative technologies and branding. It will also benefit from Firestone's position in the repair and refurbishment segment, which accounts for the majority of its sales today.
With up to 60% of a building's energy lost through its roof, Firestone Building Products plays a role in mitigating this process with cool roofs, insulation and waterproofing systems. In addition, its green roofs contribute to more sustainable urban environments. These technologies complement LafargeHolcim’s sustainable building solutions, from its ECOPact green concrete to its EcoLabel range, accelerating the company’s net zero commitment.
Firestone Building Products is a subsidiary of Bridgestone Americas. Paolo Ferrari, Bridgestone Americas president, CEO and COO, agreed that the transaction will create new growth opportunities for Firestone Building Products, and will allow Bridgestone to further invest in the company’s tire business and rapidly growing mobility solutions business.
"Like Bridgestone, LafargeHolcim is a global company with a strong financial position and thriving culture," said Ferrari. "We know they will take great care of our Firestone Building Products employees and customers, and ensure the business enjoys growth and success for many years to come."
Founded in 1980, Firestone Building Products is a business unit of Bridgestone Americas and part of Tokyo-based Bridgestone Corporation, a global leader providing tires and sustainable mobility solutions. The acquisition is expected to strengthen LafargeHolcim’s biggest market, the U.S., establishing a new growth profile and reaching $6 billion in annual net sales.