ots Ad hoc-Service: Wienerberger Baustoffind. <AT0000831706> Wienerberger announces acquisition of Cherokee Sanford in the USA
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General Shale, US subsidiary of the Wienerberger Group has signed a definitive agreement to acquire the Cherokee Sanford Group LLC. Cherokee Sanford holds a share of 5% in the US brick market and is the sixth largest brick producer in the United States. The Company is market leader in the growth markets North Carolina and Maryland and operates 5 facing brick plants. The purchase price for this acquisition is USD 81 million (debt free), with closing scheduled for January 2000.
The 5 Cherokee Sanford plants have a total annual capacity of 375 million US-brick units and 687 employees have recorded consolidated sales of approximately USD 81 million and EBIT of more than USD 10 million in 1999. The company's strength is based on its excellent geographic location. Strong growth in housing construction is forecasted for the Southeast region also over the coming years. Cherokee Sanford sells the major part of its brick products through a direct marketing system, which leads to good margins.
Cherokee Sanford is the optimal partner, both from the standpoint of size and synergy in the areas of market, plant structure and organization. The market presence of General Shale in North Carolina has been low to-date. The centralization of administrative and sales activities will lead to significant cost reductions and enhance earnings.
For further information please see Wienerberger's press release.
Wienerberger Baustoffindustrie AG The Managing Board
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