Owens Corning to Sell Glass Reinforcements Business to Praana Group
Owens Corning (NYSE: OC) has signed a definitive agreement to sell its glass reinforcements business to Praana Group for an enterprise value of $755 million. The sale is part of Owens Corning's strategic plan to focus on residential and commercial building products in North America and Europe.
The glass reinforcements business, which generated revenue of approximately $1.1 billion in 2024, has about 4,000 employees across 18 operations in 12 countries. The business manufactures glass fiber reinforcements for wind energy, infrastructure, industrial, transportation, and consumer markets.
The transaction is expected to close in 2025, subject to regulatory approvals. Owens Corning will retain its glass nonwovens business supporting the Roofing segment, its structural lumber business, and two U.S. glass melting plants which will be integrated into its Insulation segment.
Owens Corning (NYSE: OC) ha firmato un accordo definitivo per vendere il suo business di rinforzi in vetro al Praana Group per un valore d'impresa di 755 milioni di dollari. La vendita fa parte del piano strategico di Owens Corning per concentrarsi su prodotti per l'edilizia residenziale e commerciale in Nord America e in Europa.
Il business dei rinforzi in vetro, che ha generato ricavi di circa 1,1 miliardi di dollari nel 2024, conta circa 4.000 dipendenti distribuiti in 18 operazioni in 12 paesi. L'azienda produce rinforzi in fibra di vetro per i mercati dell'energia eolica, delle infrastrutture, industriale, dei trasporti e dei consumatori.
Si prevede che la transazione si chiuda nel 2025, soggetta ad approvazioni regolatorie. Owens Corning manterrà il proprio business di tessuti non tessuti in vetro a supporto del segmento Roofing, il suo business di legname strutturale e due impianti di fusione del vetro negli Stati Uniti, che saranno integrati nel suo segmento Isolamento.
Owens Corning (NYSE: OC) ha firmado un acuerdo definitivo para vender su negocio de refuerzos de vidrio al Praana Group por un valor empresarial de 755 millones de dólares. La venta es parte del plan estratégico de Owens Corning para centrarse en productos de construcción residencial y comercial en América del Norte y Europa.
El negocio de refuerzos de vidrio, que generó ingresos de aproximadamente 1.1 mil millones de dólares en 2024, cuenta con aproximadamente 4,000 empleados en 18 operaciones en 12 países. La empresa fabrica refuerzos de fibra de vidrio para los mercados de energía eólica, infraestructura, industrial, transporte y consumo.
Se espera que la transacción se cierre en 2025, sujeta a aprobaciones regulatorias. Owens Corning mantendrá su negocio de no tejidos de vidrio que apoya el segmento de techado, su negocio de madera estructural y dos plantas de fusión de vidrio en EE. UU., que se integrarán en su segmento de Aislamiento.
오웬스 코닝 (NYSE: OC)은 프라나 그룹에 유리 보강재 사업을 7억 5,500만 달러에 매각하기 위한 최종 계약을 체결했습니다. 이 매각은 오웬스 코닝이 북미 및 유럽의 주거 및 상업용 건축 제품에 주력하기 위한 전략 계획의 일환입니다.
유리 보강재 사업은 2024년에 약 11억 달러의 수익을 올렸으며, 12개국 18개 사업장에서 약 4,000명의 직원을 고용하고 있습니다. 이 사업은 풍력 에너지, 인프라, 산업, 운송 및 소비자 시장을 위한 유리 섬유 보강재를 제조합니다.
거래는 규제 승인을 조건으로 2025년에 마감될 것으로 예상됩니다. 오웬스 코닝은 지붕 부문을 지원하는 유리 비직조 사업, 구조재 사업 및 미국 내 두 개의 유리 용융 공장을 유지하며, 이들은 단열 부문에 통합될 것입니다.
Owens Corning (NYSE: OC) a signé un accord définitif pour vendre son activité de renfort en verre au Praana Group pour une valeur d'entreprise de 755 millions de dollars. La vente s'inscrit dans le plan stratégique d'Owens Corning visant à se concentrer sur les produits de construction résidentiels et commerciaux en Amérique du Nord et en Europe.
L'activité de renfort en verre, qui a généré des revenus d'environ 1,1 milliard de dollars en 2024, compte environ 4 000 employés répartis sur 18 sites dans 12 pays. L'entreprise fabrique des renforts en fibre de verre pour les marchés de l'énergie éolienne, des infrastructures, de l'industrie, des transports et des consommateurs.
La transaction devrait être finalisée en 2025, sous réserve des approbations réglementaires. Owens Corning conservera son activité de non-tissés en verre soutenant le segment Toiture, son activité de bois structurel et deux usines de fusion de verre aux États-Unis qui seront intégrées dans son segment Isolation.
Owens Corning (NYSE: OC) hat eine endgültige Vereinbarung zur Veräußertung seines Glasfaser-Verstärkungsbereichs an die Praana Group zu einem Unternehmenswert von 755 Millionen Dollar unterzeichnet. Der Verkauf ist Teil des strategischen Plans von Owens Corning, sich auf Wohn- und Gewerbebauprodukte in Nordamerika und Europa zu konzentrieren.
Das Glasfaser-Verstärkungsgeschäft erzielte im Jahr 2024 einen Umsatz von etwa 1,1 Milliarden Dollar und beschäftigt etwa 4.000 Mitarbeiter in 18 Betrieben in 12 Ländern. Das Unternehmen stellt Glasfaser-Verstärkungen für die Märkte Windenergie, Infrastruktur, Industrie, Transport und Verbrauch her.
Die Transaktion wird voraussichtlich im Jahr 2025 abgeschlossen, vorbehaltlich der behördlichen Genehmigungen. Owens Corning wird sein Geschäft mit Glasvliesstoffen zur Unterstützung des Dachbereichs, sein Geschäft mit strukturellem Holz und zwei US-Glasmelzanlagen behalten, die in seinen Isolierungsbereich integriert werden.
- Sale of glass reinforcements business for $755 million enterprise value
- Strategic focus optimization on core building products business
- Retention of profitable glass nonwovens and structural lumber businesses
- Integration of U.S. glass melting plants into Insulation segment for operational efficiency
- Divestment of business unit generating $1.1 billion in annual revenue
- Reduction of global operational presence and market diversification
Insights
The sale of Owens Corning's glass reinforcements business at
This strategic divestiture carries several key implications:
- Capital Efficiency Enhancement: The transaction will significantly improve OC's capital allocation efficiency by reducing exposure to the capital-intensive glass reinforcements sector, potentially leading to higher returns on invested capital (ROIC).
- Market Focus Optimization: The strategic pivot to concentrate on building products in North America and Europe positions OC to capitalize on secular trends in residential and commercial construction, including energy efficiency requirements and sustainable building practices.
- Operational Integration: The retention and reorganization of the glass nonwovens business within the Roofing segment, along with the integration of U.S. glass melting plants into the Insulation segment, creates a more vertically integrated structure that could enhance operational synergies and cost control.
The reorganization of retained businesses demonstrates a thoughtful approach to vertical integration, particularly in supporting the core roofing and insulation segments. This restructuring could lead to improved operational efficiency and better margin control in these higher-value segments.
Looking ahead, the streamlined business model should allow OC to focus its R&D and capital investments on higher-margin building products, potentially leading to expanded market share in its core markets. The reduced exposure to cyclical industrial markets could also result in more stable earnings patterns and potentially higher valuation multiples.
- Transaction completes Owens Corning’s previously announced strategic review of the business
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Strengthens Owens Corning’s focus on residential and commercial building products in
North America andEurope - Enhances Praana Group’s existing advanced materials and composites business through the addition of Owens Corning’s glass reinforcements business
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
Brian Chambers, Owens Corning Chair and Chief Executive Officer, stated, “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
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
About Owens Corning
Owens Corning is a residential and commercial building products leader committed to building a sustainable future through material innovation. Our products provide durable, sustainable, energy-efficient solutions that leverage our unique capabilities and market-leading positions to help our customers win and grow. We are global in scope, human in scale with more than 25,000 employees in 31 countries dedicated to generating value for our customers and shareholders and making a difference in the communities where we work and live. Founded in 1938 and based in
About Praana Group
Established in 1956, Praana Group is an
Forward-Looking Statements
In this press release, statements that are not reported financial results or other historical information are “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events. These statements can be identified by words such as “anticipate,” “estimate,” “expect,” “intend,” and variations of negatives of such terms or variations thereof. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements regarding the sale of the glass reinforcements business (the “Transaction”), including statements regarding the expected timing and structure of the Transaction. All such forward-looking statements are based upon current plans, estimates, expectations and ambitions that are subject to risks, uncertainties, assumptions and other factors, many of which are beyond the control of Owens Corning, that could cause actual results to differ materially from the results projected in such forward-looking statements. These risks, uncertainties, assumptions and other factors include, without limitation: the risk that the parties may not be able to satisfy the conditions to the Transaction in a timely manner or at all; risks related to obtaining required regulatory or other third-party approvals and consents; risks related to the completion of an internal reorganization to separate the glass reinforcements business from Owens Corning’s retained businesses; levels of residential and commercial or industrial construction activity; demand for our products; industry and economic conditions including, but not limited to, supply chain disruptions, recessionary conditions, inflationary pressures, interest rate and financial markets volatility, and the viability of banks and other financial institutions; availability and cost of energy and raw materials; competitive and pricing factors; relationships with key customers and customer concentration in certain areas; our ability to achieve expected synergies, cost reductions and/or productivity improvements; changes to tariff, trade or investment policies or laws; issues related to acquisitions, divestitures and joint ventures or expansions; climate change, weather conditions and storm activity; legislation and related regulations or interpretations, in
Owens Corning Company News / Owens Corning Investor Relations News
View source version on businesswire.com: https://www.businesswire.com/news/home/20250214371130/en/
Owens Corning Contacts
Media Inquiries:
Megan James
419.348.0768
Investor Relations:
Amber Wohlfarth
419.248.5639
Praana Group Contacts
Media Inquiries:
Deepa Viswanath
+91 9833325758
Investor Relations:
Tanmaya Goenka
484.627.3050
Source: Owens Corning
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