NASHVILLE, Tenn.–Firestone Building Products now has a new owner in LafargeHolcim Ltd.
A $3.4 billion deal for the global player in flat roofing systems was first announced in early January and allows former owner Bridgestone Corp. to reinvest the cash in its core tire business.
Firestone Building Products, which was part of Bridgestone Americas Inc. of Nashville, has a 4-percent share of the world's flat roof market. While that might not seem like a lot, the percentage actually makes Firestone Building Products the globe's fourth-largest player in that highly fragmented market.
"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," Taylor Cole, president of Firestone Building Products, said in a statement.
LafargeHolcim, historically known as a cement, concrete and aggregates maker, said the deal closed earlier than expected "due to smooth collaboration with Bridgestone." A total of 1,900 employees are moving to the new company through the sale. Firestone Building Products will remain based in Nashville.
"This divestiture will allow Bridgestone to further rebuild our earning power as we progress in our journey to become a sustainable solutions company that delivers customer and social value," Bridgestone Corp. CEO Shuichi Ishibashi said in a statement. "It also will enable Firestone Building Products to deliver on its strategic growth plans as part of the LafargeHolcim family."
LafargeHolcim purchased a profitable roofing business with sales of $1.8 billion in 2020 and earnings before interest, taxes, depreciation and amortization of $270 million. The company's CEO, Jan Jenisch, has called the deal a "transformational acquisition" for his company.