Corporate News
05.09.2016, Luxembourg

Braas Monier signs agreement to acquire concrete tile plant in Romania

  • Further strengthening of leading market position in concrete roof tiles in South-Eastern Europe
  • Active step to consolidate the local concrete roof tile market
  • Adding further cross-selling potential for roofing components

Luxembourg, 5 September 2016. Braas Monier today signed an agreement to acquire a concrete tile plant in Craiova, Romania, whose products will be sold under the brand name of Getica (Getica) in the future. Management expects to generate from this transaction in 2019 revenues of approximately RON 22 million and an Operating EBITDA of approximately RON 7.5 million, leading to a strong cash flow profile.

The total investment for the acquisition of the assets amounts to approximately RON 33 million, equivalent to approximately EUR 8 million1, including the purchase price, cost related to the acquisition including its integration, the financing of additional working capital needs and additional capital expenditure (discounted).

Through the acquisition of the plant, BRAMAC takes an active step to consolidate the local market and gains additional potential for selling roofing components to a wider customer base. It also complements its regional footprint and opens further strategic options for local brand positioning. The acquisition will be financed from free cash flow and is expected to close at the beginning of the fourth quarter 2016.

“Building activity in various parts of South-Eastern Europe has started to recover after several years of constant declines. In Romania, Bulgaria and Serbia, which are potential sales areas of the acquired plant, the number of dwellings2 in 2015 was still almost one quarter below the levels of 2009, but is expected to increase again by up to 20% by 2017. With a home ownership ratio of around 90% in these countries, renovation is expected to follow suit and to show a comparable positive development. Market recovery, however, only adds to the even more sizeable sales and cost synergies we expect to generate from this transaction, in particular stemming from our strong components business,” explains Pierre-Marie De Leener, CEO and Chairman of the Board of Braas
Monier Building Group S.A. the rational behind this value-accretive transaction.

About Braas Monier
Braas Monier Building Group is a leading manufacturer and supplier of pitched roof products in Europe, parts of Asia and South Africa. The Group covers all steps of the manufacturing process, offering a comprehensive range of concrete and clay tiles for pitched roofs and is one of the few suppliers to also manufacture and sell complementary roofing components designed to cover various functional aspects of pitched roof construction. The portfolio also includes ceramic and steel chimneys and energy system solutions. Braas Monier had operations in 36 countries and 118 production facilities and employed around 7,700 people as at 30 June 2016. The Company is headquartered in Luxembourg.

Contact
Achim Schreck
Director Group Communications / Investor Relations
Braas Monier Building Group

Tel: +49 6171 61 28 59
E-mail: achim.schreck@monier.com
Website: www.braas-monier.com

Press documents

160905_Braas_Monier_Press_release_Signing_Getica.pdf