May 10 2008
Hydro has agreed to acquire the privately owned Alumafel Group, one of the most established and well-known aluminium building systems brands in Spain. The transaction confirms Hydro’s position as a leading player in the global building systems industry.
The acquisition of Alumafel represents another step in the development of Hydro’s profitable downstream operations, following two years of successful restructuring internally.
The agreement is subject to approval of the Spanish competition authorities, with closing expected by the end of June.
The cost of the acquisition is approximately EUR 77 million on an enterprise value basis before net financial position. In 2007, the 30-year-old Alumafel Group delivered about 10,000 metric tons of building systems products. The company also supplied some 3,000 tons of extruded profiles and another 5,000 tons of aluminium plate and bars to industrial customers. This includes deliveries to Portugal, France and Northern Africa.
Alumafel’s turnover last year was around EUR 110 million. The group has more than 500 employees.
Most of the Alumafel’s facilities are located in Spain’s northern region. Its main production site, in Miranda, has two extrusion presses, painting activities, and a fully automated buffer which serves as a central warehouse and local distribution center – one of the group’s 12 distribution centers in the country. It also owns an industrial trading activity in Vitoria and controlling interest in an anodizing operation.
“We have had our eyes on Alumafel for a long time. Its brand recognition and its performance have been good and its customers loyal,” says Lars Hauk Ringvold, who leads Hydro’s building systems activities. “Hydro will be well positioned for the growing and interesting market of building integrated solar solutions, offering the most attractive brands to architects and investors in the Iberian market.”
The acquisition is Hydro’s second in Spain during the past month, following its takeover of the Expral extrusion plant near Madrid. The addition of Expral – as with Alumafel and the systems business – will put Hydro in the top level in the extrusion industry in Spain.
Large in Spain – and in Europe
Hydro has been developing its position in building systems markets across the globe, as it aims to become a leader in the industry.
Adding Alumafel will lift Hydro into a leading position in Spain, which, with 140,000 tons of building systems volume, is the second-largest market in Western Europe, behind Italy.
“We offer systems that focus on energy efficiency and sustainability, like our improved range of windows, and we are investing in keeping our systems several steps ahead of the regulations that governments all over the world are putting into practice,” Ringvold says. “This is important to our customers, so that their businesses can continue to thrive.
Posted May 9th,2008