Acquisition of remaining shares in US masonry supplier Modern Concrete LLC
– Key strategic step to strengthen direct
sales network in Kentucky and Indiana
– Expansion of market position in the USA
Vienna, January 12, 2007– Wienerberger, the world’s largest producer of bricks and the number two in clay roof tiles in Europe, has acquired the remaining shares in Modern Concrete LLC, Louisville, Kentucky, through its US subsidiary General Shale. Modern Concrete is an established full-service masonry supplier with five outlets in Kentucky and Indiana, and also has production facilities with a capacity for 2.7 million units of concrete blocks. The company sells concrete blocks from its own production as well as bricks and related building materials to builders and architects in the greater Louisville area (Kentucky) and the southern region of Indiana. Modern Concrete generated revenues of roughly € 23 million with 50 employees in 2005.
Successful partnership with Modern Concrete since 2003
The successful cooperation between this well-known masonry supplier and Wienerberger began in 2003 with the acquisition of a 35% stake in Modern Concrete by General Shale. This partnership will now be expanded through the exercise of a call option for the purchase of the remaining shares in Modern Concrete. The parties have agreed not to disclose any information on the purchase price.
“This transaction will expand our direct sales network in one of the most important American brick markets and further strengthen our market position in the USA“, commented Johann Windisch, Chief Operating Officer of Wienerberger AG, on the acquisition. In 2007 Wienerberger plans to invest at least € 250 million to continue its profitable international growth strategy and further develop its positions on brick and clay roof tile
