Saint-Gobain sells US distributor to ABC

French building materials company Saint-Gobain has signed an agreement to sell its distribution business Norandex Building Materials Distribution, a distributor of windows, siding and other exterior building products in the US, to ABC Supply Co, a distributor of roofing and siding products. Terms were not disclosed

Norandex has a network of 103 branches specialising in windows, doors, siding and roofing products. It has 770 employees and generated sales of US$393 million in 2014. This transaction is in line with Saint-Gobain Building Distribution’s strategy of optimising its portfolio by divesting non-core assets and focusing on bolstering its leading positions in Europe and Brazil.

The transaction is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act and is expected to close in the fourth quarter 2015.

ABC says this transaction is its largest acquisition since the purchase and successful integration of Bradco Supply in June 2010. “This strategic acquisition reinforces our leadership position in the exterior products market and establishes a strong foundation for our next phase of growth” said Keith Rozolis, ABC Supply’s President/CEO.

With the Norandex acquisition, the combined company will operate over 600 locations in 49 states and the District of Columbia with combined annual sales of over US$6 billion. “We look forward to welcoming the Norandex team into the ABC family,” said Keith Rozolis. “And, are confident that this combination will bring new benefits and create enhanced opportunities for our customers and associates from both companies”.

Headquartered in Beloit, Wisconsin, ABC Supply was founded by Ken and Diane Hendricks in 1982 and operates more than 500 branches in 49 states and the District of Columbia. The privately held company had sales of approximately US$5.3 billion in 2014.

With 2014 sales of EUR41 billion, Saint-Gobain operates in 66 countries and has over 180,000 employees.