Holcim Acquires Duro-Last to Accelerate Green Growth

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by KnowESG,

Holcim Ltd

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Holcim has entered into a contract to purchase Duro-Last, a prominent provider of commercial roofing systems in the United States, with estimated net sales of $540 million.

Due to its high-quality brands, new technologies, and custom solutions, Duro-Last has grown a lot in North America's profitable roofing industry, which is worth more than $40 billion. The addition of Duro-Last's systems to Holcim's existing roofing offerings is expected to bring about synergies worth $60 million annually.

This deal is valued at $1,293 million, with a pro-forma EBITDA multiple of 11.9x for 2023, or 7.4x, once synergies are taken into account. It will result in an increase in earnings per share in the first year of implementation. As a result of this acquisition, Holcim's roofing systems will surpass $4 billion in net sales ahead of its original timeline.

Jan Jenisch, CEO: “I’m excited to welcome Duro-Last into Holcim’s broad range of innovative and sustainable building solutions. Duro-Last is a perfect strategic fit for our roofing business. Its unique technologies and top brands are a great addition to what we have to offer in the fast-growing North American market. Its energy-efficient systems and excellence in recycling will further advance our leadership in sustainability. I congratulate the Burt family and its leadership team for developing such a thriving business based on its strong customer relationships and, most of all, its empowered and dedicated people. I am excited to further strengthen the Duro-Last brand and welcome all 840 employees to the Holcim family.”

Tom Saeli, CEO of Duro-Last: “Over the past 45 years, our family business has continually reinvested in Duro-Last to create the solid, financially strong and well-recognised company we are today. We're happy to join the Holcim family, which shares our core values, and we're looking forward to growing our success in the future. Holcim recognises the opportunities at Duro-Last, and we are confident it will support us in our future growth plans.”

Duro-Last is renowned for its forward-thinking approach and commitment to sustainability. Its cutting-edge research and development team is always adding new technologies and custom solutions to its portfolio. This helps the company deliver top-notch performance. At the forefront of environmental responsibility, Duro-Last's systems range from energy-efficient "cool roofs" to its award-winning "Recycle Your Roof" initiative, promoting circularity in the roofing industry. Duro-Last is the first company in the United States to get third-party verified environmental product declarations for its thermoplastic roofing products. This is in line with the most prestigious green building certifications, such as LEED.

This acquisition furthers Holcim's "Strategy 2025 - Accelerating Green Growth," which aims to increase its Solutions & Products business to 30% of the company's total net sales by 2025. This includes entering lucrative construction segments such as roofing, insulation, repair, and refurbishment. The acquisition is in keeping with Holcim's disciplined financial approach and is contingent upon the completion of typical conditions and obtaining regulatory approval in the United States. It is expected to be finalised by the second quarter of 2023.

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Source: Holcim