Printer Friendly

H+H signs to acquire HeidelbergCement's German and Swiss calcium silicate unit business for DKK818m.

NORDIC BUSINESS REPORT-December 15, 2017-H+H signs to acquire HeidelbergCement's German and Swiss calcium silicate unit business for DKK818m

(C)2017 M2 COMMUNICATIONS http://www.m2.com

H+H International A/S (CPH:HH) announced on Thursday that the company and its subsidiary, H+H Deutschland GmbH, have signed an agreement with HeidelbergCement AG and two other HeidelbergCement Group companies, to acquire the HeidelbergCement group's German and Swiss CSU business (HDKS).

This transaction implies an enterprise value of DKK818m. The purchase price will be settled in cash at closing. Reportedly, Danske Bank A/S has committed to finance the transaction. Also, a long-term supply agreement of sand in place.

According to H+H, during the next 12 months, it will evaluate different funding sources to maintain a prudent capital structure. With the acquisition, H+H will increase revenues by DKK500m and EBITDA by DKK100m and will reportedly become the second largest European producer of calcium silicate units (CSU), focusing on the fast-growing high-rise segment. Also this strategic acquisition has an excellent geographic fit with H+H's present business and will supplement H+H's existing product offering.

HDKS produces and sells CSU, which competes on the global masonry market against aircrete, clay bricks and light-weight concrete blocks.

This transaction, which does not require antitrust approvals, is expected to close in Q1 2018. Minor regulatory approvals to be obtained in the future.

In addition, H+H reiterated its outlook for 2017. Transaction costs related to this transaction, including a special transfer tax on real estate, are expected to be in the region of DKK25m of which an estimated 30% is due in 2017 and will be treated as special items.

H+H's core activity is the manufacture and sale of autoclaved aerated concrete or aircrete.

(EUR1.00=DKK7.44)

((Comments on this story may be sent to info@m2.com))

COPYRIGHT 2017 Normans Media Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2017 Gale, Cengage Learning. All rights reserved.

 
Article Details
Printer friendly Cite/link Email Feedback
Publication:Nordic Business Report
Date:Dec 15, 2017
Words:308
Previous Article:Elisa's board resolves on incentive plan for key employees.
Next Article:SAS names TorbjArn Wist as new CFO.
Topics:

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters