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Business and Financial Review
Successful acquisition policy
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On 27 January 2004, the Geberit Group completed the acquisition of the German Mapress Group, which had been announced at the end of 2003, with effect as of 1 January 2004. Following the competition authorities’ approval, the transaction was closed without further restrictions.
The Mapress Group is a pioneer and one of the leading providers in the area of high-quality metal press fitting piping systems made of stainless steel, carbon steel and copper and drainage solutions made of stainless steel for a broad variety of applications. The Mapress part of the business comprises supply systems for water and gas as well as heating, sprinkler and industrial applications. The Blücher business consists of building drainage systems and marine. Major markets are Germany, Italy, Austria, Switzerland, the United Kingdom, France and Scandinavia. Production plants are located in Langenfeld (DE) for Mapress products as well as in Vildbjerg and Vojens (DK) for Blücher products. The Mapress Group employs a staff of about 900 and generated sales of approximately MEUR 230 (MCHF 360) in 2003. The enterprise is highly profitable and has been achieving substantial EBITDA margins, comparable to those of Geberit, for years.
Geberit has acquired 100% of the interests in Mapress from a US financial investor at a price of MEUR 372.5, less net debt. The enterprise value corresponds to 6.9 times the operating cashflow (EBITDA). The transaction was financed using available cash, drawing down existing credit facilities and through a new loan issue.
The integration activities were targeted and efficient. The integration of the Mapress piping systems business was nearly completed as of the end of 2004. Marketing of the Mapress product range by the Geberit sales organization – strenghtened by Mapress employees – has started. Geberit has acquired the Mapress agents or importers in the United Kingdom, Norway and Finland. The Mapress production plant in Langenfeld (DE) was integrated into the Geberit production organization. Based on the analysis of the Blücher business performed in connection with the integration, it became evident that Blücher drainage products offer few synergies, in particular with respect to the distribution channel and business model. Therefore, Geberit decided to divide the Mapress Group, which had to be acquired in its entirety at the time of acquisition, and to initiate the sale of the Blücher business. As mentioned before, Geberit entered into a sales agreement with Danish investors relating to a sale of Blücher Metal ApS in December 2004. The transaction was completed at the beginning of 2005 upon separation of the Danish and Swedish Mapress business. The Blücher products contributed MCHF 63.1 to 2004 total sales. |
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