Shah sees opportunity to implement transformational growth strategy
Owens Corning (NYSE: OC), a residential and commercial building products leader from Ohio, and India’s Praana Group have signed a definitive agreement for the sale of Owens Corning’s glass reinforcements business to Praana Group (through its subsidiaries) at an enterprise value of US$755 million.
This sale is a part of Owens Corning’s strategic plan to reshape the company to focus on residential and commercial building products in North America and Europe.
Owens Corning’s glass reinforcements business, part of the company’s Composites segment, manufactures, fabricates, and sells glass fiber reinforcements for a wide variety of applications in wind energy, infrastructure, industrial, transportation, and consumer markets. The business generated revenue of approximately US$1.1 billion in 2024 and has approximately 4,000 employees across a global footprint that includes 18 operations in 12 countries.
Brian Chambers, Owens Corning Chair and Chief Executive Officer, said on 14 Feb, “After a comprehensive review of strategic alternatives, the Owens Corning Board concluded that a sale of the business to the Praana Group supports the company’s strategic plan and results in the greatest overall value to its shareholders. I want to thank the glass reinforcements team for their continued focus on operating safely, delivering high-quality products, and helping customers win and grow in the market.
“This transaction strengthens Owens Corning as a focused, more capital-efficient building products leader in North America and Europe. The combination of today’s announcement, along with the strategic initiatives and investments we have made over the past several years, positions us to drive profitable growth and deliver strong cash generation to maximize long-term shareholder value,” concluded Chambers.
Vishal Goenka, Vice Chairman of Praana Group, and Anuj Goenka, Executive Board Member of Praana Group, said, “The glass fiber reinforcement business is highly competitive and is poised for growth in the medium to long run, especially on account of the global push towards adoption of clean energy, reduction of carbon footprint, and material substitution.
“This strategic acquisition will grow our footprint in glass reinforcements with new geographies, broaden the scope of our operations, and enhance our ability to deliver solutions that contribute to global efforts for a more sustainable and efficient future. It will also strengthen Praana Group’s competitiveness and operational efficiencies in glass fiber reinforcements for composites for the industrial sector.”
Vishal Shah, Executive Director and Global Head of M&A for Praana Group, added, “Praana has a long track record of acquiring carve-outs and establishing them as thriving, independent companies. We are highly enthusiastic about the acquisition of Owens Corning’s glass reinforcements business and believe it represents a great opportunity to implement our transformational growth strategy.”
The sale will complete Owens Corning’s review of strategic alternatives for the business announced in early 2024. The transaction is expected to close in 2025 and is subject to customary regulatory approvals and other conditions.
Owens Corning will retain the other businesses within its Composites segment. These include the company’s vertically integrated glass nonwovens business that supports its Roofing segment and other building products customers, along with its structural lumber business. Going forward, these businesses will operate within Owens Corning’s Roofing segment. Owens Corning’s two glass melting plants in the US, which provide glass fibers to make nonwovens products, will operate and be integrated within its Insulation segment.
Owens Corning is a residential and commercial building products leader committed to building a sustainable future through material innovation. It posted sales of US$9.7 billion in 2023. Established in 1956, Praana Group is an India-based multinational engaged in operating a global portfolio of manufacturing facilities in the fields of specialty chemicals (Sterling Specialty Chemicals, Galata Chemicals, Artek Surfin Chemicals) and glass fiber & composite materials (3B Fibreglass). Our innovative solutions and high-quality products cater to a wide range of industries like construction, textiles, automotive, home & personal care, energy and industrial markets. Fiinews.com
