Wienerberger makes an offer for the acquisition of Terreal

Terreal: Leading European supplier in the field of roofing products dedicated to renovation and repair

The scope of the transaction would include Terreal's activities in France, Italy, Spain and the United States, as well as the German and Benelux activities of Creaton, acquired by Terreal in 2020, which employ nearly 3 people. Upon completion of this transaction, Wienerberger would expand its operational footprint by 000 locations. The acquisition of Terreal's activities, which are expected to generate annual revenue of approximately €29 million in 740, would be an important complement to Wienerberger's activities, particularly in the context of the new French Environmental Regulations (RE 2022) relating to the thermal efficiency and sobriety of the materials used for construction, adopted in parallel with European regulations relating to the reduction of energy consumption. In addition, Terreal operates state-of-the-art facilities, particularly in France, including the research and development center in Castelnaudary, and in Germany.

The ideal step in Wienerberger's value-creating growth strategy

For Wienerberger, the acquisition of Terreal would complement existing activities, offer unique growth opportunities, particularly in the French and German markets, and allow the company to further strengthen its position as a pioneer in innovation and decarbonization in the sector.

For Heimo Scheuch, Chairman and CEO of the Wienerberger Group: “Renovating Europe's aging building stock is an essential step towards achieving climate neutrality. For Wienerberger, this business area has enormous growth potential to be exploited in the coming years, especially in the roof segment, including solar and water management solutions. The acquisition of Terreal would double our roofing sales. By increasing them to 75 million m2, it would be an important step in the implementation of our value-creating growth strategy. With Terreal's activities perfectly complementing our own product range, we would strengthen our ability to provide best-in-class solutions, especially in the strategically important markets of France and Germany. At the same time, our position in the renovation and repair sector would improve considerably. Thanks to our shared focus on sustainability, innovative solutions and digitalized business models, the installation of our solutions will reduce CO2 emissions by 225.000 tonnes per year. In addition, we will achieve sustainable synergies by combining our production facilities and technologies and expanding our product range with respect to pitched roof, including accessories and insulation. By creating Europe's first true pitched roof expert that integrates solutions for solar, water and other roof solutions, Wienerberger is building a solid platform for further growth. »

For Laurent Musy, Chairman and CEO of the Terreal group: “In recent years, Terreal has successfully implemented a sustainable growth strategy, thanks to the commitment of our teams, the support of our customers, our communities and our shareholders, whom I would like to particularly thank. The successful acquisition and integration of Creaton in Germany and Eastern Europe was a very positive highlight. At a time when unprecedented challenges related to high energy prices and the ever more urgent needs of decarbonization of our industry and building are assailing us, joining forces with Wienerberger would allow us to accelerate our current roadmap thanks to sharing best practices, investments, innovation and digitization. Wienerberger is a highly reputable European company with extensive expertise in the clay tile and brick industry worldwide. It would clearly benefit from the complementarity of our industrial footprint and the addition of Terreal/Creaton's brands, assets and capacities, particularly in France and Germany, in the field of pitched roofs and solar. Wienerberger has an ambitious industrial and commercial project that will ensure the sustainable growth of our activities. Our highly successful Austrian, Polish and Hungarian colleagues would remain under the control of our current shareholders. We will continue to support them in the transition phase. »

By purchasing Terreal, Wienerberger would take its biggest step yet as part of its value-creating growth strategy, which is based on ambitious ESG criteria and focuses on the development of sustainable products and solutions. To this end, the company has completely repositioned itself strategically over the past ten years and has become a complete provider of efficient renovation, new construction and water management solutions. The combination of innovative products, industry know-how and partnership-based distribution models across Europe strengthens Wienerberger's sales network and, at the same time, accelerates progress towards the company's ambitious environmental goals. company.