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HOLCIM TO ACQUIRE MALARKEY ROOFING PRODUCTS 23 December 2021 • Malarkey is a proven growth engine in the highly profitable and growing US residential roofing market • Highly regarded brand with leadership in innovation and sustainability in Holcim’s biggest market • Complementary acquisition in roofing systems to achieve USD 4 billion Net Sales by 2025 • Accelerates Holcim’s growth in Solutions & Products to reach 30% of Group Net Sales by 2025 • Synergies of USD 40 million by year three, acquisition is EPS accretive from year one Holcim has signed an agreement to acquire Malarkey Roofing Products, a leading company in the US residential roofing market with projected 2022 Net Sales of USD 600 million and EBITDA of USD 120 million. Malarkey Roofing Products has a track record of double-digit growth in the highly profitable USD 19 billion US residential roofing market. Malarkey is fully complementary to Firestone Building Products’ leadership in the commercial segment, positioning Holcim as a full roofing provider. Malarkey’s strong brand recognition is driven by its leadership in innovation and sustainability with a highly circular business model. Jan Jenisch, CEO: “We are off to a strong start to our ‘Strategy 2025 – Accelerating Green Growth’ with the acquisition of Malarkey Roofing Products, expanding our Solutions & Products business to become a global leader in roofing systems. I congratulate the Malarkey family for what they have achieved and am committed to investing in the company’s continued success to unleash its next era of growth together. Our companies are highly complementary with many upsides. I am impressed by the Malarkey brand, the innovative technology, the great network of production facilities and, most importantly, purpose driven employees who are vital for the company’s sustainable growth and national expansion plan. I am excited to further strengthen the Malarkey brand and legacy and welcome all employees and sites into the Holcim family.” Gregory Malarkey, President of Malarkey Roofing: “We couldn’t be more thrilled. For decades, we’ve sought a company that agrees with our vision, aligns with our values, and can help us accelerate our growth strategy. Today, we found it in Holcim. Like Malarkey, Holcim has a strong focus on driving the circular economy and leading the transition towards sustainable construction. It’s a very exciting time for both brands. To our employees, customers, partners, contractors, and friends, who continue to support our company and mission, thank you! You’ve witnessed first-hand the market’s rapid acceptance of our unique value proposition. With Holcim’s knowledge and resources, we can extend that value proposition to even more consumers. We’re just getting started.” Jamie Gentoso, Global Head of Solutions & Products: “With Malarkey Roofing Products we enter the highly profitable and fast-growing residential roofing market, driven by repair and refurbishment as well as shifting customer preferences towards more sustainable and resilient building materials. With a track record of double-digit growth for the past ten years, Malarkey is a proven growth engine for expanding our range of roofing systems from commercial to residential.” This transaction is valued at USD 1.35 billion, to be financed with 100% cash. Synergies of USD 40 million per year are expected on a run-rate basis to be realized by year three. The acquisition is earnings per share (EPS) accretive from the first year. Malarkey Roofing Products was founded by Herbert Malarkey in 1956 and is headquartered in Portland, Oregon. It provides complete solutions for residential roofing needs from roofing shingles to ice and water barriers. With production facilities in Oregon, California and Oklahoma, Malarkey Roofing Products has a strong presence from the West to the South of the US that is highly complementary with Firestone Building Products’ footprint. The acquisition advances Holcim’s “Strategy 2025 – Accelerating Green Growth” with the goal to expand its Solutions & Products business to 30% of Group Net Sales by 2025, entering the most attractive construction segments, from roofing and insulation to repair and refurbishment. The transaction is in line with Holcim’s commitment to strict financial discipline and is subject to customary conditions and regulatory clearance in the United States. It is expected to close in the first quarter of 2022. About Holcim Holcim builds progress for people and the planet. As a global leader in innovative and sustainable building solutions, Holcim is enabling greener cities, smarter infrastructure and improving living standards around the world. With sustainability at the core of its strategy Holcim is becoming a net zero company, with its people and communities at the heart of its success. The company is driving the circular economy as a world leader in recycling to build more with less. Holcim is the company behind some of the world’s most trusted brands in the building sector including ACC, Aggregate Industries, Ambuja Cement, Disensa, Firestone Building Products, Geocycle, Holcim and Lafarge. Holcim is 70, 000 people around the world who are passionate about building progress for people and the planet through four business segments: Cement, Ready-Mix Concrete, Aggregates and Solutions & Products. Important disclaimer – forward-looking statements: This document contains forward-looking statements. Such forward-looking statements do not constitute forecasts regarding results or any other performance indicator, but rather trends or targets, as the case may be, including with respect to plans, initiatives, events, products, solutions and services, their development and potential. Although Holcim believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions as at the time of publishing this document, investors are cautioned that these statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are difficult to predict and generally beyond the control of Holcim, including but not limited to the risks described in the Holcim's annual report available on its website (www.holcim.com) and uncertainties related to the market conditions and the implementation of our plans. Accordingly, we caution you against relying on forward-looking statements. Holcim does not undertake to provide updates of these forward-looking statements. |
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