Gypsum industry news

Russia: The Federal Antimonopoly Service (FAS) has approved an application by Knauf Gypsum Kuban to acquire a 100% stake in ZZSG. FAS ruled that the takeover would not have any effects for competition in the market sector.

ZZSG is a producer and seller of gypsum products in the Mari El federal region of Russia. Knauf Gypsum Kuban is a Russia subsidiary of Knauf.

France/Switzerland: Saint-Gobain and the Burkard family have extended their agreement relating to the sale of shares of Schenker-Winkler Holding (SWH) and to extend the validity of the agreement until 30 June 2017. Saint-Gobain will then have an option to extend the agreement until 31 December 2018. SWH holds the majority of voting rights of Sika.

"Together, we are fully committed to this transaction. It makes sense from a strategic, industrial and financial standpoint for Saint-Gobain and for Sika, for their employees, for their customers and for all of their shareholders. The amendment to the agreement covers the longest of timelines to resolve related disputes, allowing SWH to regain its property rights," said Pierre-André de Chalendar, Chairman and CEO of Saint-Gobain.

In December 2014, Saint-Gobain announced its intention to buy a 16.1% stake in Sika for Euro2.6bn, thus acquiring control over the building materials producer. However, Sika's management and minority shareholders opposed the deal. At the end of January 2016, Saint-Gobain's finance chief Laurent Guillot told Reuters that the group still believed in a successful outcome despite the resistance it faced. In February 2016 Sika reiterated its opposition to the takeover in a financial statement saying that, "There is still no evidence to suggest there is any industrial logic behind the transaction."

US: Headwaters Resources has announced it has entered into a definitive agreement to purchase 100% of the membership interests of Synthetic Materials based in Louisville, Kentucky. The acquisition, which is subject to the satisfaction of certain closing conditions, is expected to close in Headwaters current fiscal year. It is intended to complement the coal combustion product management operations of Headwaters.

Synthetic Materials handles synthetic gypsum processing and management. It has 21 years of experience providing services to the flue gas desulfurisation industry, including the design and construction of gypsum dewatering systems, gypsum marketing, landfill and pond management. At present it provides operations and maintenance services at 10 different utility sites and manages over 4Mt/yr of bulk synthetic gypsum, generating approximately US$25m in annual revenue. The expected purchase price will range between US$38 – 45m, depending upon certain conditions.

Colombia: Knauf Colombia has acquired Paneltec, a local gypsum wallboard producer. The acquisition enlarges the wallboard manufactures footprint to a second plant in the country.

"We at Knauf are happy to welcome into our family Paneltec, a company that has earned recognition in our country and the region," said Miguel Rangel Galvis, Knauf Colombia General Manager. "With two industrial plants, the education and service that this operation will bring about in the next months and years, many more customers will be able to enjoy all the benefits of technology that Knauf develops for drywall construction in Colombia."

Knauf Colombia has a wallbaord plant in Cartagena. Paneltec began to produce plasterboard in its Barranquilla plant in 2008. Wallboard sales grew by 10% in 2015 in Colombia.

US: Gypsum Management and Supply (GMS) has acquired Robert N Karpp Company, a drywall supplier based in Boston, Massachusetts. The purchase gives GMS, a North American distributor of gypsum wallboard and suspending ceiling systems, entry into the New England market.

"This addition to our business is a natural fit for GMS as we continue to expand our geographic footprint, while providing our resources as a national brand to help support new and existing local yards," said Mike Anderson, the GMS VP of Operations for the Northeast region.

US: Gypsum Management & Supply (GMS), a Georgia-based distributor of specialty interior building products, has bought Gypsum Supply Co. Inc. for an undisclosed sum. Gypsum Supply has one location in Toledo and seven sites across Michigan.

"We are thrilled to welcome Gypsum Supply Co. to the GMS family," said the President and CEO of GMS, Mike Callahan. "The acquisition positions us to capitalise on markets throughout Michigan and Northwest Ohio. We plan to leverage the long-term relationships and reputation that Gypsum Supply Co. has built to enhance our presence in this strategic market. We believe that the company and its employees are a natural partner for our growing company as their culture and dedication to excellence mirrors our own mission."

US: Gypsum Management and Supply, Inc. (GMS), a leading North American distributor of wallboard, suspended ceiling systems and other specialty building products, has acquired Badgerland Supply and its six locations in Wisconsin and Illinois.

Badgerland has served the Wisconsin and Northern Illinois markets for over 25 years through its diverse offering of high-quality wallboard and construction products. Badgerland has an established market presence with a strong customer base primarily in the remodeling, residential, commercial and institutional sectors.

"We are pleased to have Badgerland Supply join our growing network of GMS companies," said Jerry Speights, Vice President of the Central Division of GMS. "Its longstanding presence in these dynamic Midwest regions, paired with its employees' in-depth knowledge of the local markets, makes Badgerland Supply an invaluable addition to the GMS family."

US: Londonderry-based Wallboard Supply Co, part of US LBM, has acquired Vermont-based Poulin Lumber. Poulin, based in Derby, Vermont, has supplied building products and hardware to homeowners and contractors since 1936. It has four locations in northern and central Vermont and sells engineered wood and wall panels, gypsum wallboard, insulation, roofing, moulding, windows, doors, fasteners, tools, kitchen and bath cabinetry and fixtures, as well as numerous lines of hardwood and laminate floors.

China: China National Building Materials' (CNBM) 45.2%-owned subsidiary Beijing New Building Material Public Limited Company (BNBM) has agreed to acquire a 35% equity interest in Taishan Gypsum Company through a private issuance of 369 million BNBM shares to Taishan Gypsum minority shareholders at US$1.79/share for a total of US$661m.

Upon completion, BNBM will directly and indirectly hold the entire equity interest in Taishan Gypsum. Taishan Gypsum minority shareholders will hold 20.7% of the enlarged issued share capital of BNBM after the private issuance. The equity interest held by CNBM in BNBM will reduce from about 45.2% to 35.84%.

Upon completion of the transaction, Taishan Gypsum will be wholly-owned by BNBM, enabling CNBM to further integrate its internal resources, allowing BNBM to improve its operating results and further consolidate the group's market position.

Europe: USG has entered into a definitive agreement for the sale of its interest in Knauf-USG Verwaltungs GmbH and Knauf/USG Systems GmbH and Co KG to Knauf Aquapanel GmbH for approximately Euro48m in cash.

The Knauf-USG joint venture manufactures and distributes Aquapanel brand cement panels throughout Europe (excluding Turkey) and all countries that were part of the former Soviet Union.

USG's equity method income in the Knauf-USG joint venture amounted to Euro1.79m for the year that ended on 31 December 2014. Upon the close of the transaction, USG anticipates recording a Euro2.68 – 6.26m gain. The closing of the sale is subject to the receipt of necessary governmental approvals and other customary closing conditions and is expected to take place by the end of 2015.