USG to sell European operations
USG Corp. has entered into a definitive agreement for the sale of its wholly owned European business operations to affiliates of Gebr. Knauf Verwaltungsgesellschaft KG for approximately $80 million. That amount is subject to adjustment based on working capital and net debt levels at closing.
The businesses being sold include the manufacture and distribution of Donn brand ceiling grid and Sheetrock brand finishing compounds throughout Europe, Russia and Turkey.
“While USG’s European operations have been performing well, we prefer to focus our investment in higher growth markets,” said James Metcalf, chairman, president and CEO. “We contacted more than 60 potentially interested parties, including both strategic buyers and private equity firms, and decided to sell the businesses following a thorough evaluation that produced strong interest. We’re pleased with the value we are receiving for this group of assets.”
Closing of the sale is subject to receipt of necessary governmental approvals and other customary closing conditions. Closing is expected to take place in the fourth quarter of this year.
Headquartered in Chicago, USG is a manufacturer and distributor of high-performance building systems through its United States Gypsum Co., USG Interiors, L&W Supply Corp. and other subsidiaries. The company serves the commercial, residential, and repair and remodel construction markets.