H+H International

M&A Activity • Jul 7, 2017

Company Announcement No. 349, 2017

Copenhagen, Denmark, 2017-07-07 12:18 CEST (GLOBE NEWSWIRE) --

H+H International A/S
Lautrupsgade 7, 6th Floor
2100 Copenhagen Ø
Denmark
Tel.: +45 35 27 02 00
www.HplusH.com
Company reg. no. 49 61 98 12
LEI 213800GJODT6FV8QM841

H+H signs agreement to acquire Grupa O?arów SA’s calcium silicate business in
Poland

The transaction will create a strong aircrete and calcium silicate business in
Poland and is expected to capture significant sales synergies. In Central
Europe calcium silicate has a strong market penetration in the important
segment for high rise buildings.

Today, H+H International A/S’s subsidiary H+H Polska Sp. z o.o. signed a
conditional agreement with Grupa O?arów S.A. to acquire 99.19% of the shares in
its Polish calcium silicate subsidiary, Grupa Silikaty Sp. z o.o. for a total
consideration of PLN 36 million (approx. DKK 64 million) (enterprise value).
The closing of the transaction is subject to customary approval by the Polish
authorities and is expected to occur at the end of 2017. The purchase price
will be paid according to a deferred payment schedule with instalments being
paid at closing (approx. DKK 14 million) and by end of January 2019 and 2020,
respectively (each approx. DKK 25 million).

Grupa Silikaty is the second largest producer of calcium silicate units in
Poland with seven production plants. Calcium silicate units are used as
building blocks in residential buildings and are predominantly made from sand
and lime. Revenue in 2016 was around DKK 157 million and EBITDA was around DKK
11 million. The company employs approximately 300 persons.

Michael T. Andersen, CEO of H+H International A/S says:

“Adding complementary products is in line with the announced strategy of
increasing our presence in the important high-rise segment. H+H has a strong
no. 2 position in Poland within aircrete, and with this acquisition we will be
in top 3 in the Polish wall building materials market.

It is expected that the combined Polish aircrete and calcium silicate
activities will be able to capture significant sales synergies due to cross
selling and brand value. Hence, the rationale behind the deal differs
significantly from H+H Polska’s acquisition of the aircrete producer Grupa
Prefabet two years ago. Further, we see this as an excellent opportunity for
H+H to gain knowledge in a complementary product area, which also has strong
penetration in the high-rise segment, including in other of our Central
European Markets.”

Outlook for H+H
As the transaction is expected to be closed end of 2017, the financial impact
on the P&L for the year is insignificant. Transaction costs will be recognised
as special items. The previously announced guidance for the year is unchanged.

Further, there are no changes to the long-term financial targets, although the
acquisition will support the efforts to reach these targets.

Integration costs, recognised as special items, are expected to be
approximately DKK 5 million.

Kent Arentoft
Chairman of the Board of Directors

Michael T Andersen
CEO

For additional information please contact:
Michael T Andersen, CEO, or Bjarne Pedersen, Vice President, Business
Development & IR,
tel.: +45 35 27 02 00.