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Braas Monier signs agreement to acquire Golden Clay Industries (GCI), leader in clay tiles in Malaysia

Braas Monier Building Group S.A. / Key word(s): Mergers & Acquisitions

2015-04-10 / 18:30

BRAAS MONIER signs agreement to acquire Golden Clay Industries (GCI), leader in clay tiles in Malaysia

- Further strengthening of existing market leading position in Malaysia

- Compelling strategic position will deliver sizeable synergies

- Attractive and technologically advanced export platform to serve other Asia Pacific addressable markets with clay tiles

- Strong cash flow profile above Group average

Luxembourg, 10 April 2015. Braas Monier today signed an agreement to acquire Golden Clay Industries Sdn Bhd (GCI), leader in Malaysia for manufacturing and supplying clay roof tiles and fittings and being one of only a few manufacturers in the Asia-Pacific-region using modern H-cassette technology. For 2014, GCI reported (unaudited, pro-forma figures) revenues of MYR 35.0 million and an EBITDA of MYR 8.5 million, on a pro-forma basis. Including substantial synergies, Management believes GCI will in the medium-term increase revenues to more than MYR 55 million and EBITDA to at least MYR 21 million, leading to a strong cash flow profile.

The total Enterprise Value of GCI amounts to MYR 90 million, equivalent to approximately
EUR 23 million (based on an exchange rate of 1 EUR = 3.906 MYR, as of 9 April 2015). This includes cash consideration of MYR 67 million, existing bank debt of
MYR 18 million and, depending on future earnings growth, potential Earn Out payments of up to
MYR 16 million (discounted). Expected cash generation from the sell down of excess stock levels are taken into account with approximately MYR -12 million (discounted).

The acquisition will be financed from free cash flow and is expected to close latest in October 2015.

"With the agreed acquisition of Golden Clay Industries we further extend our leadership position in Malaysia and acquire one of the premium H-cassette manufacturers in the Asia-Pacific-region, which we believe will deliver sizeable synergies. Amongst other things, this will provide us with a strong strategic position to better supply clay tiles to other markets in the Asia-Pacific-region, such as China, India and Indonesia, and to leverage our existing components business in the region. Following the completion of the acquisition of Cobert in January, this is another important step in growing our business through our Top Line Growth programme (TLG) and creating value for our shareholders," says Pepyn Dinandt, CEO of Braas Monier Building Group S.A..

With revenues of EUR 52.6 million in 2014, Malaysia is the fifth largest single market for the Braas Monier Building Group and the largest outside Europe. Our Group has over 50 years of experience in the Malaysian roof tile market, which today is the Asia Pacific hub for Braas Monier.

For further information, please visit our website at > Investor Relations > Publications.

About Braas Monier
Braas Monier Building Group is a leading manufacturer and supplier of pitched roof products. The Group covers all steps of the manufacturing process, offering a comprehensive range of concrete and clay tiles for pitched roofs in Europe, parts of Asia and South Africa. The portfolio also includes ceramic and steel chimneys and energy system solutions. Braas Monier had operations in
35 countries and 109 production facilities and employed around 7,300 people as at
31 December 2014. The Company is headquartered in Luxembourg.

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

Tel: +49 6171 61 28 59

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