SW Umwelttechnik Stoiser & Wolschner AG

M&A Activity • Dec 20, 1999

News Details

Ad-hoc | 20 December 1999 07:59

Ad hoc-Service: SW Umwelttechnik Acquisition

Ad-hoc Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— Press release, 20 December 1999 New Austrian acquisition by SW Umwelttechnik Precontract for purchase of a majority in Stadlbauer Umwelttechnik GmbH – one of Austria’s top three concrete pipe and shaft producers SW Umwelttechnik Stoiser & Wolschner AG has concluded a preliminary contract with Baubedarfszentrum Stadlbauer AG for the acquisition of a 51% stake in Stadlbauer Umwelttechnik GmbH, based in Edt, Lambach, Upper Austria. The parties have agreed to keep the price confidential. Stadlbauer Umwelttechnik GmbH supplies the Austrian market with wastewater disposal products, and is one of the top three Austrian manufacturers of concrete and steel pipes, and of waterproof shafts – a growing segment. The acquisition is an ideal fit for SW Umwelttechnik because it completes the range of wastewater disposal and treatment products sold in Austria. In Hungary the company is already the market leader in concrete and steel pipes, and shafts, thanks to its majority holding in Rocla Hungaria Kft. Subject to the agreement of the two supervisory boards, SW Umwelttechnik will assume the management of Stadlbauer Umwelttechnik GmbH’s industrial operations as of 1 January 2000. Completion of the necessary formal clearance procedures is expected by April 2000 at the latest. Stadlbauer Umwelttechnik currently has an annual turnover of some ATS 100 million (EUR 7.27 million), and a workforce of 50. Its customers include the leading domestic and foreign construction companies active in Austria. The acquisition represents a further strengthening of SW Umwelttechnik’s position on its home market, and thus an improved platform for expansion in the growth markets of Central and Eastern Europe. Consolidation of Stadlbauer Umwelttechnik GmbH will take place as of the assumption of management control in January 2000. Squeeze on SW Umwelttechnik Group earnings in 1999 The fourth quarter has provided renewed evidence of the difficult business climate facing the SW Umwelttechnik Group in 1999, namely: . The temporary suspension of funding for municipal wastewater treatment projects in Hungary due to the elections and emergency repairs to flood damage; . The unexpected extension of the statutory deadline for the construction of decentralized wastewater treatment systems in Austria. As stated in the report on the third quarter, a deterioration of the EBIT margin is anticipated, meaning that EBIT for the year as a whole is likely to decline. Due to the lower financial result in 1999 (among other factors in 1999, the financial result in 1998 was affected by the disposal of interests in a Group company for ATS 12 million (EUR 0.87 million)) the POA will also be down in 1999. Outlook for the SW Umwelttechnik Group The following factors will ensure that SW Umwelttechnik returns to rapid turnover and earnings growth in 2000: . The two recent acquisitions – Stadlbauer Umwelttechnik and Strong – will be contributing directly to turnover and profits from 2000 onwards, and will generate synergies with other SW Umwelttechnik Group companies. . Investment and rationalization programmes initiated in 1999 will bring a sustained improvement in the EBIT margin . The release of funding, which has now taken place, will enable work to start on major environmental projects in Hungary. . The need to comply with the relevant EU directives will mean that money has to be found to catch up with the immense backlog of investment in Austria, and still more, in the EU membership candidates in Central and Eastern Europe. That fact that, in Austria alone, estimated spending of ATS 200 billion (EUR 14.53 billion) on wastewater treatment plants, sewerage and water pipes will be required in the next decade points to the vast potential market in Central and Eastern Europe. Contacts Bernd Wolschner, member of the Management Board of SW Umwelttechnik Tel: (++43 7259) 3135; fax: (++43 7259) 1356 Christian Riel, Investor Relations Tel: (++43 463) 321 09 ext. 23; fax: (++43 463) 37 6 67; e-mail: sw_rch@magnet.at Website: www.sw-umwelttechnik.at (pictures) Ende der Mitteilung