Simpson Manufacturing submitted a binding offer with exclusivity to acquire the Etanco Group, a designer, manufacturer, and distributor of fixing and fastening solutions for the building construction market throughout Europe, for €725 million ($818 million). The company’s portfolio of products includes fasteners, connectors, anchors, and safety solutions for roofing, cladding, facade, waterproofing, and solar applications.
“Etanco’s business of providing reputable, highly engineered technical solutions with a high focus on customer service, align with Simpson’s core business model and values, making Etanco an ideal acquisition to support continued growth in our European business,” Karen Colonias, president and CEO of Simpson Manufacturing, said in a news release. “The acquisition of Etanco fortifies our footprint and expands our geographical reach in Europe, deepens Simpson’s portfolio of solutions with new and existing customers, and allows us to enter into new commercial building markets and grow our direct sales activity across the region.”
For the twelve months ended September 30, 2021, Etanco’s net sales and operating income margin were approximately €258 million ($291 million) and 19.7%. The company expects the acquisition to close near the end of the first quarter of 2022 and is anticipated to be accretive to Simpson’s earnings within the first full fiscal year after closing. Colonias said Simpson expects the acquisition to drive net sales growth with operating income synergies of approximately $30 million on an annual run rate basis.
“We are very pleased to join the Simpson team and look forward to participating in their growth plans for the future,” Ronan Lebraut, CEO of Etanco Group, said. “Etanco and Simpson share the same core values of providing high-quality products and customer service and we view this partnership as a great opportunity to broaden our product lines and further our customer and market reach.”
Colonias said the acquisition of Etanco expands Simpson’s product lines, grows market share, and improves manufacturing capabilities and efficiencies.
“In addition, our ability to leverage Etanco’s commercial building business further balances Simpson’s product portfolio and directly aligns with our key growth initiatives focused on expanding into commercial building offerings and building a leadership position in fastener solutions,” Colonias said. “We believe the acquisition of Etanco will materially contribute to both net sales and operating income margin growth in Europe, and in turn, create value for all key Simpson stakeholders.”
