Wienerberger AG (Vienna, Austria) is continuing its expansion strategy in the Netherlands and also strengthening its position in the rapidly growing clay paver market with the acquisition of Korevaar. This Dutch building materials producer generated revenues of roughly €26.5 million and EBITDA of €3.5 million in 2006 with 74 employees. The parties have agreed not to disclose any information on the purchase price for this transaction.
Heimo Scheuch, member of the Managing Board of Wienerberger AG with responsibility for north-west Europe, explained the rationale for this
investment: "The acquisition of the third largest clay paver producer in the Netherlands will increase our production capacity in this product area and also expand our portfolio. Additionally, we will organically grow our brick and roof tile business over the coming years.
“The clay pavers segment nearly doubled in volume from 185 to 330 million units between 2000 and 2006, and we expect further growth over the mid-term. With this product we intend to concentrate not only on the market for public infrastructure projects but, in particular, on private construction."
Korevaar was founded in 1925 and is one of the largest clay paver producers in the Netherlands. The company headquarters are located in the foreland of the Waal River and its production facilities are in Zennewijnen near Tiel and Schipperswaard in the Neder Betuwe region. The production capacity of these two plants totals 80 million WF (= standard format for facing bricks). Roughly 85% of this capacity is used to produce pavers and the remaining 15% for facing bricks. The necessary approvals have already been received to expand capacity at Schipperswaard. In addition, Korevaar also owns sufficient clay reserves as well as the sales unit Bos & Vermeer.
"The capability of these plants to produce both clay pavers and facing bricks will give us greater flexibility in allocating production. We also see a significant potential for synergies as well as future investments through our bolt-on program, which will make it possible for us to further expand our market positions and product portfolio for our customers over the long-term," added Heimo Scheuch in conclusion.
The Netherlands represents the third largest single market for Wienerberger AG and generates 10% of group revenues. The acquisition of Korevaar forms a part of the profitable Wienerberger growth programme which is expected to exceed €400 million in 2007.
Wienerberger also announced (15 June) that it now holds, has agreed to acquire or has received valid acceptances which represent more than 50% of Baggeridge. This follows the purchase on 14 June of an additional 10.3% of the outstanding shares in Baggeridge Brick PLC at a price of 247 pence per share from Trafalgar Asset Management Ltd and RAB Capital PLC. In the course of this purchase, Wienerberger raised its cash offer for all Baggeridge shares to 247 pence per share which equals a Wienerberger purchase price of £99.8 million for 100% of Baggeridge, taking into account the acquisition of the initial 32% at 230 pence. The company said that full terms and conditions would be detailed in the Revised Offer Document which would be posted to Baggeridge Shareholders. The offer will remain open for a period not less than two weeks following the posting of the Revised Offer Document.
Wolfgang Reithofer, CEO of Wienerberger AG, commenting on the proposed acquisition said: "We are very pleased finally to have agreed to secure a controlling stake in Baggeridge. As I have stressed last week, it was our intention to bring to an end the uncertainty to the company, its employees, and shareholders. With today's announcement of the purchase of a further 10% of the shares and the increase of our offer, we are confident that we can accelerate the positive closing of this acquisition and quickly integrate and develop Baggeridge within our group".