Wertingen, Germany - Terreal, a French industry leader in roofing products and innovative building envelope solutions, today announced the signing of a definitive agreement with international building materials specialist Etex to acquire its wholly owned subsidiary CREATON. The merger of Terreal and CREATON into a new industrial group will allow both companies to benefit from extensive synergies as well as increased coverage and a broader product range.
Consistent continuation of the corporate strategy
The merger with Terreal is a consistent continuation of the corporate strategy of Creaton GmbH, which has been focusing more strongly on the business with clay roofing tiles, concrete roofing tiles and pitched roof accessories again since last year. "The fact that the transition could now be designed and handled so quickly is also due in large part to our joint business performance in this special year 2020," says Dr. Sebastian Dresse, Managing Director of Creaton GmbH. "We have so far mastered the Corona crisis with aplomb. At the same time, and under particularly difficult circumstances, we have managed to expand our economic successes."
Creaton GmbH emerged in 1992 from the merger of two Bavarian family-owned companies and has established itself as a renowned player with a strong brand name in Germany, Southeastern Europe and the Benelux countries. As an expert in pitched roof solutions with clay and concrete roof tiles, Creaton is known for the quality of its products and services as well as for its innovative capacity. With seven production sites for clay and concrete in Germany, three plants in Poland, one plant in Hungary, as well as a pitched roof accessories expert and four regional warehouses, the company is one of the leading suppliers in the pitched roof segment. Creaton is number 1 in both Germany and Poland and number 2 in Southeastern Europe in the roof tile segment. The Creaton Group is headquartered in Wertingen (Bavaria) and employs 1,240 people.
Joint market leadership
With this transaction, Terreal is taking an important step towards international expansion. The company is thus continuing its strategy of development through dynamic portfolio management and creating further opportunities for consolidation in the markets in which Creaton operates. The merger with Creaton is aimed at European market leadership in the clay roof tile sector. The aim is to achieve a clear number 1 or number 2 position in France, Germany, Poland, Southeastern Europe, the USA and Korea, as well as significant sales in Italy, Benelux, Spain and other export countries.
With estimated sales of more than €600 million for 2020, the industrial group created by the acquisition will benefit from a balanced and diversified portfolio with an attractive range of umbrella products and significantly improved market coverage. At the same time, the merger will create commercial and operational synergy opportunities. Building on the strengths of both companies, the components and solar business will be expanded to offer customers complete solutions and systems in the future.
Laurent Musy, CEO of Terreal, explains, "The acquisition of Creaton represents a significant transformation for Terreal. By significantly expanding the size and scope of our business to become the European market leader in clay roof tiles, we are taking a major step forward on our profitable and sustainable growth path, as well as in expanding our international footprint. This transaction was made possible thanks to the strengthening of the business and financial profile that Terreal has achieved in recent years and to the strong support of our shareholders. We have great respect for what Creaton's management teams have achieved in recent years, and we share with them the same results-oriented approach to performance improvement. We look forward to working with them and have no doubt that they will be a perfect fit for our strong culture based on operational excellence, customer intimacy, openness and teamwork. We are excited about the prospects of continuing Terreal's transformation together."
The transaction will be funded through a mix of cash, debt and equity contributions from Terreal's largest shareholders: Park Square Capital, Goldman Sachs Merchant Banking Division and Barings.
Closing is subject to regulatory approval and is expected in the first quarter of 2021.
Goldman Sachs acted as sole financial advisor to Terreal in the transaction.
Creaton is one of Europe's leading roofing brands. The company has a comprehensive range of products for pitched roofs and produces and sells clay roofing tiles, concrete roofing tiles and system accessories throughout Central and Eastern Europe.
Inspired by over 150 years of experience in terracotta building materials, Terreal develops innovative solutions for the building envelope. Specializing in four areas (Roofing, Solar, Structural, Facade & Decoration) at 23 sites in France and internationally, and with over 2,000 employees, Terreal generates annual sales of nearly 400 million euros.