CLEVELAND, April 26, 2019 /PRNewswire/ — On April 24, Knauf acquired USG, nearly 17 months after first announcing its interest in doing so. “Although the deal had a long gestation period, the end result is a company that will be a drywall industry giant,” said Ken Long, manager of construction industry studies at the Freedonia Group.
According to Long, “By combining the second and third producers globally, the acquisition significantly strengthens Knauf’s competitive position in the world drywall and building plaster industry, an industry in which Saint-Gobain was previously the undisputed market leader.”
The transaction also considerably boosts the size of Knauf’s North American business operations. The company is the largest European supplier of drywall – also called gypsum board, plasterboard, and wallboard – and has manufacturing operations in the Africa/Mideast region, Asia, and Central and South America. However, Knauf did not previously have a significant presence in the US drywall and plaster market, where USG is the industry leader.
“The combined company will benefit from other synergies as well,” said Long. Knauf and USG both manufacture ceiling products, and the merged enterprise will gain greater economies of scale by combining Knauf’s European ceiling business with the US ceiling operations of USG.
Knauf has also announced its intention to integrate its North American insulation division with USG’s drywall, ceiling, flooring, roofing, and sheathing product businesses, making the company a leading broadline light building materials supplier in the US and Canada.
Additional information on Knauf, USG, and Saint-Gobain and their competitive positions in the ceiling, drywall and plaster, and insulation industries can be found in the Freedonia studies:
World Drywall and Building Plaster
https://www.freedoniagroup.com/industry-study/world-drywall-building-plaster-3464.htm
Global Insulation
https://www.freedoniagroup.com/industry-study/global-insulation-3681.htm
About The Freedonia Group, a division of MarketResearch.com – The Freedonia Group is a leading international industrial research company publishing more than 100 studies annually. Since 1985, we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Studies can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE The Freedonia Group
