Wienerberger plans to expand its brick business in Romania
OREANDA-NEWS An agreement has been reached for Wienerberger to acquire from ADM Capital its 98.3% shareholding in brick producer Brikston Construction Solutions SA (Brikston). Through this planned acquisition, Wienerberger is taking another forward-looking growth step and expanding its brick business in Romania. Brikston has operated successfully in the Romanian market for 50 years and has a production site in Iasi in the north-east of Romania. The plant has a total capacity of around 200 million NF (= standard format for brick units). The product portfolio comprises more than 40 different clay block formats for exterior and interior walls as well as products for special outdoor applications. With over 200 employees, the company generated revenues of around € 16 million in 2016.
Heimo Scheuch, CEO of Wienerberger AG, said: "The intended acquisition of Brikston is an excellent opportunity to broaden our local business, especially since Brikston is active in a region of the country where we are not yet present with a production facility. Brikston has a broad product range, a strong brand and a modern corporate culture. The company can be quickly integrated into the existing plant network, ideally complements our geographic presence in Romania and strengthens our local business."
Expansion of geographic presence in Romania
Wienerberger has been present in Romania since 1998 and is one of the major building materials producers in the country. Romania is one of the largest markets in Eastern Europe with a growing residential construction segment and further potential for the future. Apart from aerated concrete, clay block is one of the most popular building materials. All of this makes Romania an interesting and important market for Wienerberger. Wienerberger currently operates four production sites and has almost 300 employees in Romania.
Completion of transaction subject to approval by competition authority
The intended take-over is part of Wienerberger’s funds allocated for growth and portfolio optimization and fully in line with the company’s investment criteria. It will be earnings accretive with immediate effect. The completion of the transaction is subject to approval by the competition authority; pending such approval, the two companies will continue to conduct their businesses separately. It has been agreed with the current owners not to disclose the purchase price.