Solvay and Wienerberger announced that they have signed a binding agreement for the sale of Solvay’s 50% stake in Pipelife, one of the world's leading suppliers of plastic pipe systems, to Wienerberger. Solvay will receive EUR 172 million in cash for the shares, including a special dividend of EUR 10 million. For Solvay the deal represents an Enterprise Value of about EUR 257 million for its 50% stake when taking into account assumption of liabilities, including pensions and other debt-like items, for about EUR 85 million. The closing is expected in the second quarter of 2012, after obtaining the usual antitrust authorizations.
“Twenty two years ago Solvay and Wienerberger founded Pipelife in order to support a transition from concrete and metal pipes for water transportation to plastic pipes and build a market leader. Thanks to the excellent collaboration with Wienerberger this project became a great success with both targets met,” says Dominique Clerbois, Executive Vice President at Solvay Group. “The Group will use the proceeds from the sale of this plastic processing business to pursue its strategy of sustainable and profitable growth and focus on more strategic activities”, adds Jacques van Rijckevorsel, Group General Manager of the Plastics Sector and member of the Executive Committee of Solvay Group.
Pipelife is one of the world's leading suppliers of plastic pipe systems. With 29 production plants and headquartered in Vienna, Austria, the company held by Wienerberger (50%) and Solvay (50%), employs about 2.600 employees in 27 countries and realized about EUR 800 million in sales in 2011.
Wienerberger is the world’s largest brick producer (Porotherm, Poroton, Terca) as well as the market leader for clay roof tiles (Koramic, Tondach) in Europe and for concrete pavers (Semmelrock) in Central-East Europe. In pipe systems (Steinzeug-Keramo ceramic pipes and Pipelife plastic pipes), the company is one of the leading suppliers in Europe. With a network of 232 plants, Wienerberger generated revenues of EUR 1,555 million and operating EBITDA of EUR 214 million in the first nine months of 2011.
