Simpson Manufacturing Makes Binding Offer to Acquire Etanco

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Simpson Manufacturing Co. Inc., a global leader in engineered structural connectors and building solutions, stated that it has made a binding offer to purchase the Etanco Group for approximately $818 million.

Etanco is a major designer, manufacturer, and distributor of innovative fasteners, connectors, anchors, and safety solutions for the European building construction sector, including roofing, cladding, façade, waterproofing, and solar applications.

Etanco’s net sales and operating income margins for the fiscal year ended September 30, 2021 were about $291 million and 19.7 percent, respectively.

The purchase is scheduled to occur at the end of the first quarter of 2022 and to be earnings accretive to the Company during the first full fiscal year after closure.

“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,” said Simpson Manufacturing Co., Inc. President and Chief Executive Officer Karen Colonias.

“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. Further, we expect the acquisition to drive significant net sales growth with operating income synergies of approximately $30 million on an annual run rate basis.”

Ms. Colonias added, “Etanco fits within Simpson’s acquisition strategy of strengthening our business by expanding our product lines, developing complete solutions, growing our market share and improving both our 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. 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.”

“We are very pleased to join the Simpson team and look forward to participating in their growth plans for the future,” said Etanco Group Chief Executive Officer Ronan Lebraut.

“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.”

Vince is one of our building products correspondents based out of Boston, Massachusetts.