Saint-Gobain, the French construction materials company with its North American headquarters in Malvern, is expanding its domestic operations with the acquisition of GCP Applied Technologies, writes Ryan Mulligan for the Philadelphia Business Journal.

Saint-Gobain will pay $2.3 billion in cash for the Cambridge, Mass.-based chemical and materials maker.

According to the company, the acquisition will further its strategy as a “worldwide leader in light and sustainable construction.”

Saint-Gobain is buying GCP for $32 per share, which is an 18 percent premium over the company’s closing stock price of $27.02 on Friday.

This acquisition will add $1 billion in annual revenue to Saint-Gobain, along with 50 manufacturing plants and 1,800 employees. Saint-Gobain estimates that, by year five, synergy opportunities will reach $85 million.

The deal is expected to close by the end of next year.

Saint-Gobain CEO Benoit Bazin said that leveraging the scale and innovation abilities of Saint-Gobain with the advantageous geographical footprint of GCP will allow both companies to benefit from the acquisition.

“The acquisition of GCP is an excellent and significant step for Saint-Gobain to further reinforce its worldwide leadership in construction chemicals and strengthen its geographic presence in North America,” said Bazin.

Read more about Saint-Gobain in the Philadelphia Business Journal.