Acquisition

Compagnie de Saint-Gobain 6 April 2000 Saint-Gobain buys the number 1 German building materials distributor Compagnie de Saint-Gobain announces the acquisition on April 6, 2000 of Raab Karcher, the leading building distributor in Germany. Raab Karcher is also number 1 in Hungary, number 2 in the Czech Republic, number 3 in the Netherlands and regional leader in Poland. The group posted sales of 4.5 billion DM (2. 2 billion euros) in 1999, via its approximately 300 sales outlets. The purchase price for 100% of the shares of Raab Karcher is 360 MDM. The debt of Raab Karcher being assumed with the acquisition amounts to approximately 572 MDM. The total of purchase price plus assumed debt represents approximately 0.23 times the sales of Raab Karcher for 1999 and exceeds slightly the book value. The acquisition should have a positive effect on net profit in Saint-Gobain's financial statements for the year 2000. This acquisition consolidates Saint-Gobain's position as European leader in building materials distribution. The Group becomes the leader in three major European countries: France with Point P, the United Kingdom with Meyer and now in Germany with Raab Karcher. With Meyer and Raab Karcher, Saint-Gobain becomes co-leader in the Netherlands. This acquisition also provides an opportunity for Saint-Gobain to gain a foothold in building materials distribution in Eastern Europe. Saint-Gobain's Building Distribution Division, which announced on March 23 the success of the takeover bid for Meyer International Plc, will have estimated sales for 2000, including the contribution of Meyer International Plc and Raab Karcher, of estimated 9.7 billion euros which corresponds to approximately 33 percent of the Group's total sales for the year. The acquisition is subject to approval by the relevant authorities. Investor Relations Department Tel.: Florence TRIOU +33 1 47 62 45 19 - mailto:florence.triou@saint-gobain.com Tel.: Lounis BEKKAT +33 1 47 62 32 36 - mailto:lounis.bekkat@saint-gobain.com
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