IPHOFEN, Germany & CHICAGO — Building materials maker Knauf is buying all outstanding shares of USG for $44 per share in a deal that will total $7 billion. A family-owned business based in Germany, Knauf operates 220 factories worldwide with revenue in excess of $8 billion.
Under the terms of the agreement, USG shareholders will receive $44 per share, $43.50 per share in cash payable upon closing of the transaction and a $0.50 per share special dividend that would be paid following shareholder approval of the transaction. The price represents a premium of 31% to USG’s unaffected closing price of $33.51 and a 36% premium to the $32.36 average closing price for the preceding 12-month period as of March 23. Knauf expects the deal to close early in 2019.