Luxembourg, 1 June 2016. Braas Monier yesterday acquired a concrete tile plant in South Africa, operating under the brand name of Technicrete and ultimately owned by Infrastructure Specialist Group Proprietary Ltd.
Through the acquisition of the plant, Coverland South Africa 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, enabling the company to better service the northern part of South Africa at lower transport costs.
Including substantial synergies to be achieved within the next three years, Management expects to generate from this transaction in 2019 revenues of approximately ZAR 41.6 million and an EBITDA of approximately ZAR 18.2 million.
The total investment for the acquisition of the assets amounts to ZAR 52.1 million, equivalent to approximately EUR 3.0 million (Based on an exchange rate of 1 EUR = 17.5673 ZAR (as of 30 May 2016)), including the purchase price, the financing of additional working capital needs and additional capital expenditure (discounted) to significantly enhance product offerings and quality as well as production capacity.
The acquisition is financed from free cash flow.
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 31 December 2015. The Company is headquartered in Luxembourg.
Director Group Communications / Investor Relations
Braas Monier Building Group