DGAP-News: Braas Monier Building Group S.A. / Key word(s): Mergers & Acquisitions
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 million , 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 dwellings 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.
For further information, please visit our website at www.braas-monier.com > Investor Relations > Publications.
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|