Leading private equity firm, Blackstone Inc., teams up with Lazard Ltd. to launch an initial public offering for Building Materials Europe BV
HongKong - September 8, 2021 /MarketersMEDIA/ —
A recent report suggests that Blackstone Inc. is planning an initial public offering for Building Materials Europe BV. The move could value the business at as much as 6 billion Euros, approximately $7.1 billion. In a related development, Blackstone Inc. is reported to be working with Lazard Ltd, with plans to select underwriters for the potential share sale in the coming weeks. Sources close to the company have also revealed that Blackstone Inc. is considering listing the business in Amsterdam in 2022.
An initial public offering would mark a relatively quick exit for Blackstone, following an agreement in July 2019 to buy the company from CRH Plc for 1.64 billion Euros. Over the years, the company has grown in leaps and bounds, with Blackstone expanding it through acquisitions and demand strengthening for its key products.
BME is popular for distributing a wide range of products, including bricks, timber, and insulation to cater to the needs of the construction industry. The company also offers bathroom, heating, and plumbing supplies used by professional contractors as well as stores catering to home renovators. It currently boasts of over 600 locations across Europe under different brands, including BMB, Bouwmaat, Raboni, and Bauking.
Details of the IPO are yet to be made public, with a representative for Blackstone declining to comment on the issue while a spokesperson for Lazard failed to respond to a request for comment.
Buyout firms are rushing to take advantage of the busiest year for IPOs on record, bringing portfolio companies to market sooner than usual in order to benefit from high valuations. Headquartered in the Netherlands, BME has done relatively well over the years, reporting normalized earnings before interest, taxes, depreciation, and amortization increased 9.6% to 285 million euros for 2020, its first full year after the carveout from CRH.
Building material suppliers like BME could also benefit from the European Union’s Green Deal, a blueprint unveiled in July to meet stricter 2030 climate targets. A key part of those plans is to increase energy efficiency, which could increase demand for building and housing renovations.
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