USG says ‘no’ to $5.9 billion buyout
USG’s board of directors revealed today that it has rejected a $5.9 billion acquisition proposal by Gebr. Knauf KG (Knauf).
On March 15, Knauf – USG’s second-largest shareholder – offered $42 per share in cash for the Chicago-based manufacturer of Sheetrock. USG’s largest shareholder is Warren Buffet’s Berkshire Hathaway.
“Our board is always looking for ways to deliver value to all of our shareholders, but Knauf’s opportunistically timed proposal is wholly inadequate as it does not reflect USG’s intrinsic value, including the significant opportunities ahead of us,” said Steven Leer, USG’s chairman of the board.
This afternoon, shares of USG were trading close to $40 per share – up nearly 19% for the day. Shares of USG closed at $33.52 on Friday.
“USG has taken significant steps over the last two years to transform our company, our products and our balance sheet, while lowering our cost structure and improving our competitive position,” Jennifer Scanlon, president and chief executive officer of USG, said.
On Feb. 1, USG reported fourth quarter 2017 consolidated net sales of $831 million, a 13.2% increase from consolidated net sales of $734 million in the fourth quarter 2016. But the company posted a net loss of $62 million for the quarter compared to a net income of $307 million in the fourth quarter 2016.
Based in Iphofen, Germany, Knauf manufactures building materials and operates 220 factories worldwide.
On March 15, Knauf – USG’s second-largest shareholder – offered $42 per share in cash for the Chicago-based manufacturer of Sheetrock. USG’s largest shareholder is Warren Buffet’s Berkshire Hathaway.
“Our board is always looking for ways to deliver value to all of our shareholders, but Knauf’s opportunistically timed proposal is wholly inadequate as it does not reflect USG’s intrinsic value, including the significant opportunities ahead of us,” said Steven Leer, USG’s chairman of the board.
This afternoon, shares of USG were trading close to $40 per share – up nearly 19% for the day. Shares of USG closed at $33.52 on Friday.
“USG has taken significant steps over the last two years to transform our company, our products and our balance sheet, while lowering our cost structure and improving our competitive position,” Jennifer Scanlon, president and chief executive officer of USG, said.
On Feb. 1, USG reported fourth quarter 2017 consolidated net sales of $831 million, a 13.2% increase from consolidated net sales of $734 million in the fourth quarter 2016. But the company posted a net loss of $62 million for the quarter compared to a net income of $307 million in the fourth quarter 2016.
Based in Iphofen, Germany, Knauf manufactures building materials and operates 220 factories worldwide.