Simpson Manufacturing Co., Inc has announced that it has acquired the Etanco Group for approximately $818 million. The acquisition is expected to close near the end of the first quarter of 2022 and is anticipated to be accretive to the Company's earnings within the first full fiscal year after closing.
Karen Colonias, President and Chief Executive Officer of Simpson Manufacturing Co., Inc said: "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.
"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."
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."
Ronan Lebraut, Chief Executive Officer of Etanco Group, said: "We are very pleased to join the Simpson team and look forward to participating in their growth plans for the future. 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."