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[Sep 2005]
Wienerberger Continues Acquisition Activity in Danish Brick Sector
Following the acquisition of the two Wewers brick plants in Denmark in 2004, Wienerberger AG (Vienna, Austria) is continuing its expansion in that country with the purchase of Petersminde Teglvaerk A/S. This transaction will increase the Wienerberger market share in Denmark from 18% to 24%.
"Our profitable growth strategy involves the continuous evaluation of interesting acquisition projects," commented Managing Board member Heimo Scheuch. "The Petersminde brick plant was attractive for two main reasons: its extensive product portfolio of facing bricks and lintels which represents an excellent match for our own high-quality product lines as well as the geographical location on Fyn in the heart of this key Scandinavian market."
Petersminde has a production capacity of 28 million brick units per year. The parties have agreed to disclose no information on the purchase price.
Wienerberger currently operates one plant on Jutland in the west of Denmark and two plants on the island of Sjaelland in the east. The new facility will create an optimal bridge not only between these two areas but also to Sweden and Germany. "The integration of Petersminde in Wienerberger's current activities will allow us to use a number of synergies starting from the optimization of the sales system to the development of the regional market on Fyn and support for neighboring export markets in Sweden and Germany," added Heimo Scheuch.
Based on forecasts for economic growth in Denmark of roughly 2%, Wienerberger expects a positive impact on its business over the coming years. Moreover, the large number of construction permits granted for single family houses will have a favourable effect on sales volumes of bricks.
www.wienerberger.com
ENDS