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Pexabex completed acquisition of Ergon for 49,81 million PLN

15-01-2016

Pexabex Inwestycje II – company dependent from Pekabex corporation – concluded an agreement regarding acquisition of Ergon company for 49,81 million PLN (before tax), as all terms and conditions of the transaction were accepted by both parties, Ergon said in its statement.

“Acquired goods include tangible and intangible assets associated with manufacturing plant located in Badowo Mściska, village located close to Warsaw. Acquired assets are dedicated to be used in business activity relaying on manufacturing, executing construction assignments and sale of prefabricated concrete elements.” – we read in the statement.

“Acquisition deal is worth 49 806 624,36 PLN (before tax), including 45 100 000,00 PLN and inventory valued at 4 706 624,36 PLN. Total selling price of Ergon, including tax, is 60 807 725,39 PLN” – we read further in the statement

“Transaction was partly funded by Pekabex’s own funds and partly by a loan given by Bank BGŻ BNP Paribas. According to the agreement, final worth of the deal can change up to 5 working days after the announcement, as inventory value is going to be reinvestigated and recalculated to ensure that its value is completely correct. According to the buyer, acquisition of this company is a perfect match to the Pekabex’s expansion strategy and will enable the Pekabex Group to strengthen its position in CEE market” – we read in the statement’s summary.

Preliminary agreement was made in July 2015. Potential full agreement was a subject to two conditions: obtainment of permission from Office of Competition and Consumer Protection (UOKiK) and submission of necessary documents by the seller, including information confirming current legal and financial status of Ergon, presented by the seller during due diligence process.

In August 2015, Pekabex submitted a motion to Office of Competition and Consumer Protection, asking for the permission needed to acquire Ergon.

Both Pekabex and Ergon, primarily focus on production and sale of prefabricated concrete elements, mainly regarding Polish market. Pekabex is the member of Pekabex Group and Ergon was owned by CRH group.

Pekabex group is leading Polish producer of prefabricated ferroconcrete and pressurized elements. These elements are used in multiple branches of construction, primarily in process of construction of warehouses, office buildings, shopping centers, railway stations, bridges, tunnels as well as in households construction. In terms of production capabilities and generated revenues, Pekabex group is a market leader in Poland. Their sales activities are mainly dedicated to Polish market, however they also sell their products in Germany and in Scandinavian region. The company successfully entered the Warsaw Stock Exchange in July 2015.

Source: http://www.money.pl/gielda/wiadomosci/artykul/pekabex-sfinalizowal-zakup-ergon-za-49-81-mln,106,0,1998442.html