Building materials group Etex sells roof tile manufacturer | The...

Etex sells its roof tile manufacturer Creaton to Terreal in France. The Belgian specialist in building materials is completely abandoning the clay and concrete roof tiles. The group is virtually debt-free.

Two years ago, Etex opted for a strategic reorientation. It wants to become a global player in light, durable, cost-efficient and high-quality construction technologies.

Heavy clay concrete roof tiles no longer fit in there. Moreover, this market segment is facing an inevitable international wave of mergers and acquisitions due to declining market volumes. There they have to dare to dig deep into their pockets in a difficult market. Terreal, a French pioneer in roofing and innovative construction solutions, has that ambition. The family shareholders of Etex do not have this.

Creaton was the crown jewel of Etex’s clay and concrete roof tiles. The takeover in 2005 of the then still listed German company marked the great leap forward for the Belgian family construction group in that segment. With Creaton, Etex is the market leader in Germany and Poland.

An acquisition amount has not been disclosed. In 2005, Etex paid around 100 million euros to remove the partially listed Creaton from the stock exchange. Since then, turnover has almost doubled to more than 200 million euros. The sale of Creaton is one of Etex’s larger divestments in recent years.

Following the quantum leap in 2011 with the acquisition of Lafarge’s plasterboard business, Etex incurred a debt of EUR 1 billion. The semi-annual report shows that Etex has managed to reduce its net debt from EUR 640 million to EUR 310 million over the past twelve months.

Paul Van Oyen, CEO of Etex, leaves no doubt that Etex is ready to invest heavily. ‘With the money from this transaction, we can focus on more effective light solutions: plasterboard, fiber cement products, passive fire protection products and high-tech modular off-site solutions. He hints at ‘an intensive investment program to ensure further organic growth and a very active search for mergers and acquisitions in our core segments’. Lazard and Freshfields, Etex’s advisers on the sale of Creaton, may be getting additional work soon.

For Terreal, the acquisition is a major leap forward. With a turnover of 282 million euros, it employs more than 2,000 people at 23 sites in France and the rest of the world. Creaton, with a turnover of more than 200 million euros, has 1,250 employees and twelve production facilities in Germany, Hungary and Poland.