Blackstone Said to Plan IPO of $7 Billion Building Products Firm
Blackstone is planning an IPO for Building Materials Europe that could value the business at as much as $7.1 billion.
(Bloomberg) -- Blackstone Inc. is planning an initial public offering for Building Materials Europe BV that could value the business at as much as 6 billion euros ($7.1 billion), people familiar with the matter said.
The private equity firm is working with Lazard Ltd. and plans to select underwriters for the potential share sale in the coming weeks, the people said, asking not to be identified because the information is private. It is considering listing the business in Amsterdam next year, according to the people.
An IPO would mark a relatively quick exit for Blackstone, which agreed to buy the company from CRH Plc in July 2019 for 1.64 billion euros. The business has grown since then, with Blackstone expanding it through acquisitions and demand strengthening for its key products.
BME distributes products like bricks, timber and insulation for the construction industry. It also sells bathroom, heating and plumbing supplies used by professional contractors and runs stores catering to home renovators. The company has more than 600 locations across Europe under brands including BMB, Bouwmaat, Raboni and Bauking, according to its website.
No final decisions have made, and details of the offering could change, the people said. A representative for Blackstone declined to comment, while a spokesperson for Lazard didn’t immediately 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 to benefit from high valuations. EQT AB has started discussing a potential listing of skincare business Galderma, which it bought from Nestle SA in 2019, Bloomberg News reported this week.
BME, headquartered in the Netherlands, reported that 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.
©2021 Bloomberg L.P.