United States Gypsum (USG) Corp., Chicago, to be acquired by Knauf Group, Iphofen, Germany, for $7 billion.
The deal requires shareholder and regulatory approval. Knauf Group will pay USG shareholders $43.50 a share in cash and receive a 50-cent-a-share special dividend after approval. The transaction is expected to close in early 2019.
"Our board has worked diligently to evaluate all strategic options to maximize value for our shareholders, and we are pleased to have reached this agreement, which provides our shareholders with significant and certain cash value," Jennifer Scanlon, president and chief executive officer of USG, said.
USG will continue to be managed in the U.S. and headquartered in Chicago, giving Knauf access to the U.S. construction market.
"We believe this transaction will create new opportunities for both companies' customers and will benefit USG's employees, who will be part of a truly global building products company," Scanlon said.
USG has been a manufacturer for more than 115 years providing wall, ceiling, flooring, sheathing and roofing products.
