NASHVILLE, Tenn. — Bridgestone Corp. has concluded the sale of its Firestone Building Products to Swiss building products firm LafargeHolcim Ltd.
The $3.4 billion deal for the global player in flat-roofing systems was disclosed in early January and allows Bridgestone to reinvest the cash in its core tire business.
Firestone Building Products, which was part of Bridgestone Americas Inc. of Nashville, is considered the world's fourth-largest player in the highly fragmented flat-roofing market with a 4% share.
"We are in a prime position to accelerate our growth by combining Firestone Building Products' advanced technologies and know-how with LafargeHolcim's global scale and reach," Taylor Cole, president of Firestone Building Products, said.
Zug, Switzerland-based LafargeHolcim, historically known as a cement, concrete and aggregates maker, said the deal closed earlier than expected "due to smooth collaboration with Bridgestone."
A total of 1,900 employees are moving to the new company through the sale. Firestone Building Products will remain based in Nashville, also the home to Bridgestone Americas.
"This divestiture will allow Bridgestone to further rebuild our earning power as we progress in our journey to become a sustainable solutions company that delivers customer and social value," Bridgestone Corp. CEO Shuichi Ishibashi said.
"It also will enable Firestone Building Products to deliver on its strategic growth plans as part of the LafargeHolcim family."
Firestone Building Products generated earnings before interest, taxes, depreciation and amortization of $270 million in 2020 on sales of $1.8 billion.
LafargeHolcim CEO Jan Jenisch has called the deal a "transformational acquisition" for his company.