Planned acquisition of worldwide market leader and Europe’s largest producer of clay pipe systems
- Planned acquisition of worldwide market
leader and Europe’s largest producer
of clay pipe systems
- Strategic step to further expand core
business of Wienerberger AG
Vienna, October 20, 2010 – Wienerberger AG – the world’s largest producer of bricks, number one in clay roof tiles in Europe and the market leader for concrete pavers in Central-Eastern Europe – has taken a strategic step to further expand its core business by signing an agreement to acquire Steinzeug Abwassersysteme GmbH. The Steinzeug Group is an international producer of clay pipes, molded components, accessories and manhole systems. This ceramic pipe system specialist operates two plants in Germany (Bad Schmiedeberg and Frechen near Cologne) and one plant in Hasselt, Belgium, which have a combined annual capacity of 170,000 tons. In 2009/2010, the Steinzeug Group implemented extensive restructuring measures that involved capacity management, reduction of administration and the reorganization of sales. As a result, the company is well positioned for future market developments. In 2010, the company expects to generate revenues of approx. € 70 million and EBITDA of € 8 million with a workforce of more than 400. Wienerberger will acquire 100% of Steinzeug Abwassersysteme GmbH from ANCVermögensverwaltung GmbH, an affiliate of ANC Privatstiftung, for € 34 million including debt. This acquisition will terminate all ties between Wienerberger AG and the ANCVermögensverwaltung GmbH. The completion of the transaction is subject to the approval of the anti-trust authorities.
Expansion of Wienerberger‘s position in pipe systems
Heimo Scheuch, Chief Executive Officer of Wienerberger AG, explained the reasons for the takeover as follows: “After the restructuring, we want to take action where we see a meaningful extension of our existing product portfolio and an opportunity to further expand our core business. With our 50/50 joint venture Pipelife, a producer of plastic pipes in Europe with revenues of roughly € 700 million, we are already present in the market for pipe systems for drinking water, energy supply and waste water disposal as well as irrigation and drainage. We view the acquisition of Steinzeug as a strategic expansion of this business segment.” Ceramic pipes are a high-quality premium niche product and are used in infrastructure projects for waste water canal systems. They have outstanding material properties that include strength, density and hardness combined with high resistance to both wear and corrosion, as well as an unusually long service life.
Pent-up demand in Eastern Europe; need for renovation in Western Europe
“We see a significant potential for growth in the area of pipe systems. In many West European markets there is a substantial need for renovation, while large regions in Eastern Europe must first be developed. The utility connection rate in these countries ranges from 30 to 40%. The pent-up demand here is enormous – and local governments and the European Union are planning to close this gap over the coming years. In addition we believe that there are also numerous opportunities for business development outside Europe”, added Heimo Scheuch in conclusion. For additional information contact:
Karin Hofmann, Head of Public Relations
T +43 1 60192-471 | email@example.com