£245m buy makes BPB world leader
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.BPB Catapulted itself into the plasterboard industry's coveted world number one slot yesterday with the $345m (£245m) purchase of a subsidiary of its US rival James Hardie.
James Hardie is selling BPB its plasterboard business in a move that sees BPB's US market share in the US rise from 9 per cent to 16 per cent and makes it the country's third largest plasterboard maker. It also steals the world number one plasterboard crown from USG of the US, which recently filed for Chapter 11 bank- ruptcy protection.
The company said the deal gave it a strong foothold to pursue further expansion into the US, which represents 55 per cent of the world's plasterboard market. Richard Cousins, the chief executive, said: "BPB will be selling over one billion square metres per annum after this acquisition."
James Hardie said the disposal would raise funds to boost its position in the fibre cement market.
BPB said the deal would be earnings-enhancing by 2003. Its brokers, ABN Amro and Cazenove, placed 30 million BPB shares at 358p with institutional investors yesterday, raising £107m. It will use debt to finance the rest of the consideration.
The company also said its full-year profits would beat market forecasts of £148m by about £2m, due to rising demand for plasterboard in the US. Shares in the group closed up 21p, or 6 per cent, at 375p.
BPB's push into the US got underway in earnest last year with the purchase of Celotex, where it later cut 1,000 jobs.
US plasterboard prices slumped to 10-year lows in the middle of last year, but are starting to recover. According to government data, US construction spending accelerated at its most rapid pace in 12 months during January amid continued buoyancy in the housing market and higher government spending on roads.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments