MONIER GROUP STRENGTHENS PRESENCE IN KEY MARKETS OF SOUTH-EASTERN EUROPE BY ACQUIRING 100% OWNERSHIP OF BRAMAC

Wienerberger sells its 50% stake in Bramac

Tuesday 01, February 2011

The MONIER Group S.à r.l. yesterday signed an agreement with Wienerberger AG to acquire Wienerberger’s stake in the Bramac Group. Previously, the two groups had been joint-venture partners, each holding 50% of the equity. Bramac is one of the leading roofing materials companies in South-Eastern Europe, operating in 12 countries, with 13 production sites and some 900 employees. Its concrete tile business has seen continuous growth ever since the group was founded in 1966, and concrete tiles today account for around 75% of sales. Bramac Dachsysteme International, based in Pöchlarn, Austria, also sells roofing components and a range of solar thermal systems. In 2009 the Bramac Group recorded total sales of €135 million.

The transaction is conditional on the approval by the competition authorities.

Comments Pepyn Dinandt, CEO of the MONIER Group: “Taking sole ownership of the Bramac Group is part of our ongoing strategy for the geographical optimization of the MONIER Group’s activities. It strengthens our presence in the most important markets of South-Eastern Europe, where the Bramac brand is already well known, and has built up strong customer relationships over many years. The South-Eastern Europe region accounts for more than 20% of total European sales of concrete tiles. While sales have been falling for a number of years as a result of adverse market conditions, we now see potential for pitched roof markets in South-Eastern Europe to recover in the medium to long term. The acquisition will enable us to take a larger share of the proceeds of this growth, in terms of both volume and profits.”

The deal will also deliver synergies with the MONIER Group’s core businesses in Western Europe, and provide scope for extending its product portfolio in areas including roofing components and energy-efficient construction, with new lines such as insulation for pitched roofs and solar systems.

In 2010, the MONIER Group carried out a programme of strategic divestments. As well as selling its membership interest in MonierLifetile LLC in the USA to the Boral Group, it also sold off its roofing tile operations in Brazil and Japan. “This geographical realignment of our portfolio will lay the foundations for the profitable future growth of the Group,” says Dinandt.

Overall, 2010 was a good year for the MONIER Group. While sales remained steady, the operating result achieved was significantly above forecast. Operating cash flow also improved substantially, due to continued rigorous working capital management and tight discipline with regard to expenditure.

As part of the deal to acquire full ownership of Bramac, MONIER is also divesting its 25% stake in Austrian clay tile manufacturer Tondach Gleinstätten, which will pass to Wienerberger.

About MONIER
The MONIER Group is the world’s leading provider of building materials for pitched roofs as well as of innovative roof, chimney and ventilation systems. The company has operations in 42 countries on four continents, which are managed by a holding company based in Luxembourg. Decades of experience, a comprehensive range of products and trend-setting innovations enable the Group to utilize the full potential of roofs in the interests of sustainability – for the benefit of the customers as well as of the present and future generations. In the year 2009, 9,667 employees generated a turnover of €1.245bn. For more information, go to: www.monier.com