Pipelife Stake Disposal

Wienerberger have completed the acquisition of the remaining 50% stake in Pipelife from Solvay for a purchase price of €162 million.
 
Pipelife is one of the world’s leading suppliers of plastic pipe systems.  The company operates 27 plants in Europe and the USA with 2,650 employees across 27 countries.  Their product portfolio covers system solutions for building installations, drinking water supply, irrigation, sewage and rainwater management systems, energy supply and drainage as well as specialist products for industrial applications.  In 2011, the company generated revenues of €804.5 million and operating EBITDA of €68.9 million.
 
For Solvay the deal represents an Enterprise Value of about €257 million for its 50% stake when taking into account assumption of liabilities, including pensions and other debt-like items, for about €85 million. 
 
For Wienerberger the takeover represents a milestone in the strategy to expand the core business with the integration set to secure sustainable organic growth potential and reduce the dependency on new residential construction which in turn will increase revenues by approximately €800 million and EBITDA by approximately €70 million per year.
 
The purchase price (€ 162 million) will be paid from their existing cash flow and available credit lines.  Since Pipelife had very low net debt at the end of 2011, Wienerberger does not expect any significant deterioration in its balance sheet or financial indicators.  Financial discipline and a strong balance sheet as well as strict cost management remain the focal points of the Group’s financial policies, and the goal remains intact to hold the debt repayment period (net debt / operating EBITDA) below 2.5 years. 
 
Wienerberger is the world’s largest brick producer (Porotherm, Poroton, Terca) as well as the market leader for clay roof tiles (Koramic, Tondach) in Europe and for concrete pavers (Semmelrock) in Central-East Europe.  In pipe systems (Steinzeug-Keramo ceramic pipes and Pipelife plastic pipes), the company is one of the leading suppliers in Europe.  With a network of 230 plants, Wienerberger generated revenues of €2,024 million and operating EBITBA of €259 million in 2011.

Alix Frank Rechtsanwälte GmbH, Vienna, Austria, acted on behalf of Wienerberger Group on the deal, reinforcing a long lasting relationship spanning 25 years.  Senior Partner Alix Frank-Thomasser led the team consisting of Franz J.  Heidinger (partner), Zuzanna Noetstaller (junior partner) and Georg Schuh (associate).