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[January 2008]
Wienerberger Takes Majority Stake in Sandtoft, UK’s No 3 Roof Tile Producer
Wienerberger AG (Vienna, Austria) has secured a 74% stake in Sandtoft. This company, which is managed by the Oldridge family, is the third largest producer of roof tiles in Great Britain and generated revenues of approximately £42 million and EBITDA of £5 million with 417 employees in 2007. The parties have agreed not to disclose any information with respect to the price for this transaction.
"Taking a majority stake in the largest independent roof tile producer in Great Britain marks our first step in the development of a significant local presence and will also strengthen our position in this interesting product segment,” explained Heimo Scheuch, member of the Managing Board of Wienerberger AG with responsibility for North-West Europe and Germany, regarding the reasons for this investment. “In the past we were represented on the British clay roof tile market by products distributed from our plants in Belgium, France and Germany. With Sandtoft we are investing in a company with an established and growing brand in clay, concrete and slate roofing systems and a well-positioned product line.
“Currently, concrete roof tiles are the leading product with a market share of roughly 60% in Great Britain and Sandtoft has a long established track record in the production of high quality concrete roofing products. But clay roof tiles are steadily gaining market shares in Western Europe because of the aesthetic benefits, natural and sustainability qualities offered by clay products. We see substantial opportunities for further growth in the clay roof tile market in Great Britain. Sandtoft is ideally positioned to benefit from this growth as a result of its investments in a large clay tile production line at its Broomfleet plant during 2005.”
Sandtoft, a family-owned company that was founded in 1904, is the third largest producer of roof tiles in Great Britain and the market leader in the large clay tile segment. In recent years, Sandtoft has become recognised as the industry innovator with a series of highly successful new clay tiles that have significantly reduced the cost of a natural clay roof. The company is headquartered in Sandtoft (Lincs, England) which is not far from Doncaster and Leeds, distributing clay, concrete and slate roofing systems nationwide from four plants in northern England (Broomfleet, Sandtoft, Goxhill, Heckmondwike). In addition, the company has large clay reserves and plans to expand capacity for the production of clay roof tiles at its Broomfleet site.
Managing Director Simon Oldridge said: "In Wienerberger we found a partner with strong international presence driven by entrepreneurial spirit, and founded on world class production expertise: a company which recognises the strength derived from Sandtoft's combined offer of clay, concrete and recycled slate ranges; and one which is committed to building on the experience of the current management team.
“Together we will be able to realise synergies and significantly improve our position and product offering to even better meet the challenges of the future.”
“The recent expansion into large format clay tiles, backed by long established expertise in the production of high quality concrete roofing products, has placed Sandtoft in a perfect position to challenge the status quo in the UK roof tile market. It is our strategy to further develop the business. With Wienerberger's backing, and technical know how in both clay and concrete tile production, I believe we will create a strong new force in the UK roof tile market," concluded Heimo Scheuch.
ENDS