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[February 2002]
Hanson Sells Continental European Brick Operations
Hanson PLC announced on 19 February 2002 that agreement had been reached to sell Hanson Brick continental Europe (HBcE) to Wienerberger AG for a cash consideration of 64.5 million euros (approx £39.3 million). Completion of the disposal is subject to receipt of appropriate regulatory approvals.HBcE operates a total of 23 plants: 10 in Holland, 7 in Belgium, 3 in Germany, 2 in Poland and 1 in France. Of these, 19 produce facing bricks, 2 manufacture clay pavers and a further 2 manufacture hollow bricks. These operations have a combined capacity of 960 million units. In 2001, they generated sales of roughly 150 million euros and recorded EBITDA of 14.2 million euros, with 1,060 employees.
HBcE has been headquartered in Holland and the majority of the production units date from the 1996 acquisition by Hanson of Desimpel. Commenting on the disposal, Hanson's Chief Executive Andrew Dougal said: "Given Hanson's outlook for its continental European brick operations, this sale represents a sensible disposal and will now enable us to focus our resources on developing our more profitable operations".
After signing the agreement, Wienerberger's CEO Wolfgang Reithofer commented: "The integration of the Hanson brick business in Continental Europe into the Wienerberger/Terca organisation will create a high potential for synergy, and decisively strengthen the market performance and earning power of the Group.
"In the past Wienerberger has repeatedly proven its ability to successfully combine acquired companies with existing structures and thereby increase the overall value of the Group. We can rely on 180 years of know-how in the production of bricks, and use the exchange of information with new colleagues to optimise our business."
Wienerberger is the world's largest brick producer, with activities on all major markets in Europe and the USA.
Following the disposal, Hanson remains the second largest manufacturer of bricks in both North America and the UK. Additionally, it is the largest producer of aggregates in the world.
Subsequent to this announcement, Hanson reported preliminary results for 2001 on 21 February 2002. Continuing trading turnover was up 27.3% from £3.234 billion to £4.115 billion. Continuing trade profit (pre-goodwill/exceptionals) was up 14.9% from £454.8 million to £522.6 million. Pre-tax profit (pre-exceptionals) was up 10.2% from £318.6 million to £351 million.
Andrew Dougal said: "Although trading conditions in 2001 were challenging, the group was able to deliver another record year, with benefits from tighter focus on cost and margin control as well as from acquisitions".
Chairman Christopher Collins added: "In the current economic climate, it is particularly difficult to predict the outlook so early in the year. We will continue to adopt a cautious approach, maintaining our 'back to basics' disciplines".
ENDS