Bridgestone to sell Firestone Building Products unit for $3.4B

NASHVILLE, Tenn. — Bridgestone Americas Inc. has agreed to sell its Firestone Building Products unit in a $3.4 billion deal that will allow the tire maker to "focus its resources" on its core tire and emerging mobility solutions businesses.

LafargeHolcim Ltd., a Swiss building products company, is buying the business, which produces commercial roofing and building envelope solutions at 15 facilities throughout the U.S.

Paolo Ferrari, Bridgestone Americas CEO, president and chief operating officer, said the strategic divestment of this unit will allow Nashville-based Bridgestone to focus on its core tire and mobility businesses.

"This transaction will create new growth opportunities for Firestone Building Products and allow Bridgestone to focus its resources to further invest in the company's tire business and rapidly growing mobility solutions business," Mr. Ferrari said.

LafargeHolcim said the purchase will be financed with cash and debt while maintaining net debt below two times earnings.

The Firestone Building Products unit had estimated net sales of $1.8 billion and EBITDA of $270 million in 2020, according to Bridgestone.

For its part, LafargeHolcim expects the addition of the business unit to solidify and grow its position within the U.S.

"With Firestone Building Products we are strengthening our biggest market, the U.S., while also building a global growth and innovation platform for the company," LafargeHalcim CEO Jan Jenisch said.

"Today's milestone is a strategic leap on our journey to become the global leader in innovative and sustainable building solutions, to build a world that works for people and the planet."

Zug, Switzerland-based LafargeHalcim operates 2,300 sites and employs about 72,000 across 75 countries.