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[June 2008]
Duratex Acquires Cerâmica Monte Carlo
Brazil’s major ceramic player Duratex SA has signed a Buying and Selling Agreement for the acquisition of the whole outstanding quotas from the capital stock of Cerâmica Monte Carlo Ltda, having the Definitive Contract to be signed up to 30 June 2008.
Cerâmica Monte Carlo is an important producer of vitreous chinaware located in the municipality of Cabo de Santo Agostinho, near to the City of Recife in the State of Pernambuco. The acquired industrial plant is modern and has an industrial output capacity of 120,000 items per month. The total investment will be met with own resources worth R$60 million including the actual acquisition price plus adjustments capex and working capital needs.
With this extra acquisition, the Deca Division will reach an output capacity of 4.9 million items per year by the end of 2008, up from the 3.8 million items per year capacity existing at the end of 2007. After this, the capacity will be gradually expanded, reaching 6.5 million items per year in 2009 and finally 7 million items per year in 2010, which is equivalent to a third of the total Brazilian ceramic sanitaryware output capacity.
This acquisition will allow a relevant cost reduction in accessing the North and North-East regions, which have presented strong growth rates in the last few years and are responsible for about 30% of the Brazilian ceramic sanitaryware market. This operation will also help improve the product mix and provide immediate access to a very demanding market, said Duratex.
www.duratex.com.br
ENDS