Braas Monier signed an agreement with the Uralita Group to acquire Tejas Cobert (Spain) and CT Cobert Telhas (Portugal), market leader in the Iberian Peninsula for manufacturing and supplying clay and concrete roof tiles and fittings, on 31 October 2014. For 2013, Tejas Cobert and CT Cobert Telhas reported revenues of EUR 32.1 million and a slightly positive EBITDA. The total cash consideration amounts to EUR 26.5 million, including existing inter-company loans. The expected acquisition will completely be financed from existing cash on hand and is expected to be closed in early January 2015 at the latest.
“With the agreed acquisition of Tejas Cobert and CT Cobert Telhas we have set an important milestone to further strengthen our European business and to execute our plan to create value for our shareholders,“ says Pepyn Dinandt, CEO of Braas Monier Building Group S.A.. “In the medium term we expect a significant increase in the top and bottom line as the recovery in Spain and Portugal slowly takes hold.”
The Iberian residential construction market is the fifth largest single market in Europe. After several years of strong declines, leading research institutes expect this market to stabilise in 2014 and to start growing again in the coming years. Besides the Iberian markets, Tejas Cobert and CT Cobert Telhas have generated significant growth via their well set-up export businesses, with a focus on high quality clay tiles. Currently clay tiles are sold in more than 50 countries on five continents. The companies have six production facilities in Spain and Portugal.
Braas Monier knows the operating business in Spain and Portugal well as it already holds a non-controlling interest in the Uralita subsidiary - cooperation between Tejas Cobert and Redland (today part of the Braas Monier Building Group) dates back to 1985.