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After approval of the transaction by antritrust authorities, Wienerberger will hold a 50% stake in Tondach Gleinstätten AG (the remaining 50% of the shares are family owned), and Monier will own 100% of Bramac. Wienerberger will deconsolidate Bramac, while Tondach Gleinstätten, which was previously accounted for at equity, will be included in results on a proportionate basis of 50%. For Wienerberger in 2011, the transaction should result in an increase of €40 million (~ $55,8 million) in net debt and a positive non-recurring effect of €30 million (~ $41,8 million) on earnings.
Tondach Gleinstätten has been expanding in Eastern Europe since 1992 and now has 20 plants in 11 countries. In 2009, the company generated revenues of approx. €200 million (~ $279 million) with 2,666 employees. In recent years, Tondach has made investments to upgrade and expand its production sites and now has a network of modern plants with state-of-the-art equipment.
Clay roof tiles are playing an increasingly important role not only in new residential construction but in the renovation market. “As announced, we plan to strengthen our activities in the renovation market, and this transaction represents a key strategic step in the planned direction,” said Heimo Scheuch. “By raising our investment in Tondach, we can bundle our expertise in this area and work more efficiently to develop a joint strategy with the two families who own the remaining 50% of the shares. The Tondach structures are similar to Wienerberger with innovative and high-quality products, a modern industrial base and strong local management. My goal is closer cooperation in the central operating areas, which will allow both companies to profit from the growth in Eastern Europe.”
Scheuch is reportedly optimistic about opportunities in this region. “I see significant mid-term potential in these countries, above all because of the pent-up demand for new construction and renovation-and we intend to develop this potential together. There is a clear-cut quality orientation in eastern Europe and I see Tondach, with its proven quality, innovative products and modern production technology, as the perfect partner for our strategy in this region. Tondach is well positioned thanks to the outstanding efforts of managing partner Franz Olbrich, and I look forward to working more closely with him.”
For additional details, visit www.Wienerberger.com.