DGAP-News: Braas Monier Building Group S.A. / Key word(s): Mergers & Acquisitions
Braas Monier signs agreement to acquire Italian clay tile manufacturer
- Active step to consolidate the local clay roof tile market in Italy
- Significant improvement of supply and presence in Central and Southern Italy
- Adding further cross-selling potential for roofing components
Luxembourg, 8 December 2015. Braas Monier yesterday signed an agreement to acquire Ceprano Coperture S.r.l. (Ceprano), a manufacturer of clay roof tiles, operating one plant in Central Italy. Since 2009, Ceprano was part of IBL spa. (Italy), a producer of common bricks, extruded facing bricks and soft mud facing bricks. Ceprano clay tiles and IBL bricks are distributed via the same sales representatives. Through the acquisition, Monier Italy takes an active step to consolidate the local market and gains additional potential for selling roofing components to a wider customer base. It also improves its regional footprint significantly, enabling the company to better service Central and Southern Italy at lower transport costs. Monier Italy further strengthens its leading position in the Italian pitched roof market significantly.
For 2015, Ceprano is expected (unaudited, pro-forma figures based on current management assumptions) to generate revenues of approx. EUR 9 million and an EBITDA of approx. EUR 1 million. Including substantial synergies, Management believes the acquisition of Ceprano will contribute revenues of approx. EUR 12 million and an EBITDA of approx. EUR 2.5 million by 2018, with a high cash conversion (defined as (Operating EBITDA - Sustaining Capex) / Operating EBITDA) of approx. 80 percent.
The total Enterprise Value of Ceprano amounts to approx. EUR 10 million. This includes cash consideration of approx. EUR 7.0 million, necessary increase in working capital of approx. EUR 3.6 million and additional capital expenditure of approx. EUR 0.6 million (discounted) as well as a future Earn Out payment (expected to be cash effective earliest in the second half of 2017) of approx. EUR 1.3 million (discounted) based on produced volumes. Expected deferred tax assets and the sale of an idle asset are taken into account with approx. EUR -2.7 million (discounted).
The acquisition is financed from free cash flow and expected to close before year end.
'The planned acquisition of Ceprano is our second consolidation move in Italy in just one month and the consistent continuation of our stringent approach to increase shareholder value,' says Pepyn Dinandt, CEO of Braas Monier Building Group. 'We actively use favourable market opportunities to seek out value-accretive bolt-on acquisitions in all geographies and existing business lines. Since the start of the year, Braas Monier closed or initiated five value-accretive transactions with an overall Enterprise Value of approx. EUR 80 million.'
For further information, please visit our website at www.braas-monier.com > Investor Relations > Reports & Presentations.
About Braas Monier
|Company:||Braas Monier Building Group S.A.|
|4, rue Lou Hemmer|
|Grand Duchy of Luxembourg|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|