9.6 times EBITDA April 03, 2024 | Philadelphia
SAINT-GOBAIN ANNOUNCES INTENT TO ACQUIRE THE BAILEY GROUP OF COMPANIES, LEADERS IN METAL BUILDING SOLUTIONS IN CANADA
Purchase price of CDN$880,000,000
2023 Revenues of CDN$532,000,000
2023 EBITDA of CDN$91,300,000
2023 EBITDA margin of 17.2%
For Fiscal year ending January 2024, Atrium Research expects ADF Group (DRX) to achieve an adjusted EBITDA of $54.1M (17% margin).
Using the same multiplier ($880,000,000 / $91,300,000 = 9.6) as the Saint-Gobain acquisition would give Group ADF a valuation of $521,445,000 ($54,100,000 X 9.6) or $15.86 per share.
https://www.saint-gobain.com/sites/saint-gobain.com/files/media/document/20240403_Acquisition_Bailey_Presentation.pdf
https://www.saint-gobain-northamerica.com/company/newsroom/news-releases/saint-gobain-announces-intent-acquire-bailey-group-companies-leaders